Employer Stock in 401k plan

[2muchstress]

I'm administering a traditional balance forward 401(k) plan with employer stock as an investment option. The client called me with questions regarding the Form 4 filing. The Form 4 reports to the SEC and transactions of employer stock by the directors.

Apparently there is a new requirement by the SEC that this form be filed within 2 days of the transaction.

How is it possible to obtain this information timely enough to file the Form 4? Have any others come across this? Would transactions in a qualified plan be exempt from this filing?

[E as in ERISA]

The administrator could flag insiders' accounts, so that no transactions are executed without first contacting the employer.

[Kirk Maldonado]

Unless the purchase or sale results from a "discretionary transaction," it isn't even reportable. You need to review the SEC Rule 16b-3 and the other rules under Section 16 of the Securities Exchange Act of 1934. I'm pretty sure that they are available on the SEC's website.

[E as in ERISA]

An article on benefitslink at http://benefitslink.com/articles/DLA20020807.pdf is reporting that the rules could be applicable to benefit plans, but that the "SEC is considering extending the Form 4 reporting deadlines for a narrow range of transactions, including discretionary transactions involving employee benefit plans."