### Question
Can you define what employee stock ownership plan means?


### Answer
**Employee stock ownership plan** is defined as the following in *26 U.S.C. § 4975*:

> a defined contribution plan—


(A) which is a stock bonus plan which is qualified, or a stock bonus and a money purchase plan both of which are qualified under section 401(a), and which are designed to invest primarily in qualifying employer securities

#### Citation:
  - *26 U.S.C. § 4975*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 43-QUALIFIED PENSION, ETC., PLANS**

