Company Stock

[fidu]

One more try . . .

DB plans are prohibited from holding more than 10% of company stock - correct?

Are there maximum employer stock limits for DB plans?

What if the plan docs and trust agreement are silent? whats the limit then?

ANY guidance or relevant ERISA provisions would be greatly appreciated

Thanks

[david rigby]

ERISA section 407, which you can access here: http://www.benefitslink.com/erisa/crossref...nce_short.shtml

Note that the language refers to "employer security" (not "stock") and also includes employer real estate.

Subsection (a)(2) imposes the 10% limit, while subsection (B)(1) provides the exception for individual account plans.

Not sure if there is a requirement to include this 10% limit in the plan's written documents. Seems unnecessary for the plan document itself, but might be relevant for the plan's trust document.