When you finish ten years in the Pod—that is, after completing two consecutive five-year terms—you unlock an extra exit choice that is not available at the first five-year mark. You may still redeem for cash or roll into the next Pod, but you now also have the option to receive an in-kind basket of the fund’s stock and other marketable securities instead of cash.
The reason this becomes possible only after year seven is the IRS “mixing bowl” rule. That rule prevents an exchange fund from handing one investor someone else’s contributed property before seven years have passed, otherwise the tax deferral would be lost. By remaining in the Pod for a full decade you easily clear the seven-year clock, so an in-kind distribution no longer violates the rule. If you want the technical details, see What is the mixing bowl rule and how does Craft navigate it?
Choosing the in-kind route keeps your tax deferral alive. You do not recognize gain when the securities land in your brokerage account, and your original basis carries over. You can hold the stocks as long as you wish, sell them gradually, or even donate them, timing any future tax exactly as you like. The only immediate tax you will see at the ten-year rollover is your share of the long-term gain from the stock the fund sells to refresh the fleet, because that sale happens whether you exit or stay.
In short, complete two full cycles to gain maximum flexibility. Cash redemption is always there, rolling forward keeps the aircraft benefit alive, and after ten years you can finally take an in-kind portfolio—made possible by clearing the seven-year mixing bowl rule.