benefitsguru Posted May 16, 2016 Share Posted May 16, 2016 Any reason to not offer employer stock fund in a supplemental 401(k)? Thanks! Link to comment Share on other sites More sharing options...
QDROphile Posted May 16, 2016 Share Posted May 16, 2016 Rather than play a guessing game, how about providing some relevant information, such as whether or not the stock is publicly traded and what you mean by a supplemental 401(k)? No matter what, an employer stock investment option increases complexity and potential for trouble, especially if elective contributions are eligible. Link to comment Share on other sites More sharing options...
jpod Posted May 16, 2016 Share Posted May 16, 2016 Do you mean a NQ plan? How about Federal and State securities registration issues, for starters? Perhaps not a reason not to, but at least a consideration. Link to comment Share on other sites More sharing options...
benefitsguru Posted May 16, 2016 Author Share Posted May 16, 2016 I oversimplified the question. Stock is publicly traded (registration not an issue), and supplemental plan is a NQ plan that mirrors a 401(k) except that the Code's limits are not taken into consideration. I understand that some employers don't offer employer stock in their supplemental plan despite that all other 401(k) investments (deemed) are available in the supplemental plan. Link to comment Share on other sites More sharing options...
QDROphile Posted May 21, 2016 Share Posted May 21, 2016 Even with publicly traded stock there are securities law issues and there are accounting issues. None are show stoppers, but the additional complexity and potential for mistake and misunderstanding are a consideration. hr for me 1 Link to comment Share on other sites More sharing options...
EBECatty Posted May 23, 2016 Share Posted May 23, 2016 Shouldn't the nonqualified plan be unfunded, in which case it's just the deemed investment return of publicly traded employer stock? Link to comment Share on other sites More sharing options...
benefitsguru Posted May 23, 2016 Author Share Posted May 23, 2016 Thanks for your reply. Yes, all investments are deemed investments so the plan remains unfunded. So any offering of employer stock would be a deemed investment. I'm thinking there may be an accounting reason because I can't determine any ERISA/securities laws reasons. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now