Final answer:
An Employee Stock Ownership Plan (ESOP) is the type of employer stock purchase plan that can be included in a qualified 401(k) plan. It provides employees with ownership interest in the company, unlike other plans such as ERISA, IRA, or SEP.
Step-by-step explanation:
The employer stock purchase plan that might be included in a qualified 401(k) plan is the Employee Stock Ownership Plan (ESOP). Unlike other plans such as the Employee Retirement Income Security Act (ERISA), Individual Retirement Account (IRA), or Simplified Employee Pension (SEP), an ESOP is specifically designed to provide workers with an ownership interest in the company.
Defined contribution plans like 401(k)s and 403(b)s are tax-deferred and allow for regular contributory inflows from employers and employees. These plans offer a variety of investment options and are highly portable, allowing individuals to continue their retirement savings even when changing employers.
By participating in an ESOP, employees have the potential to benefit from the success of the company through the allocation of company stock. Thus, for workers looking to have a stake in their employer's company, the ESOP option within a 401(k) can be a valuable component of their retirement savings strategy.