Under the Internal Revenue Code federal statutes, allows an employee in an employee stock ownership plan (ESOP) trust to reinvest dividends into their Section 401(k) plans (a switchback approach). Participants may reinvest their dividends into this “KSOP” on a tax-deferred basis or obtain the dividends in cash and pay income tax. If reinvested, the contribution is reduced by the amount of the dividend. Also referred to by the acronym KSOP or 401k.