Certain investment diversification rights apply to a participant in an ESOP:

The correct answer states that certain investment diversification rights apply to a participant in an Employee Stock Ownership Plan (ESOP) who is at least age 55 and has been a participant in the plan for at least 10 years. This aligns with the regulations governing ESOPs, which provide participants with the right to diversify their investment in company stock under certain conditions.

Specifically, the law aims to protect participants' retirement savings by allowing them to reduce their risk exposure to their employer's stock, especially as they approach retirement age and have had a substantial tenure in the plan. Being at least age 55 and having a decade of participation ensures that individuals are close to retirement and have a significant stake in the ESOP, thereby granting them the right to diversify their investments for better financial security as they transition into retirement.

In contrast, while eligibility for early retirement or having spousal consent may be relevant to other aspects of ESOPs or retirement plans, they do not specifically address the investment diversification rights set forth in the question. Age alone, without the component of participation duration, does not establish eligibility for diversification rights, underscoring the importance of both the age and duration of participation in determining these rights.