WDIK Posted July 7, 2003 Posted July 7, 2003 I have a disagreement with an insurance company issuing an ERISA bond as to whether or not an investment in the stock (which is not publicly traded) of a small community bank is a qualifying plan asset. I would sincerely appreciate the opinions of the other users in this forum. Thanks. ...but then again, What Do I Know?
Blinky the 3-eyed Fish Posted July 11, 2003 Posted July 11, 2003 I don't think it's the investment that is important, but whether or not it is held in a regulated financial institution. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
WDIK Posted July 11, 2003 Author Posted July 11, 2003 I agree. The point of dispute is whether or not bank stock is held in a regulated financial institution merely because it is bank stock. My opinion is that it is not a qualifying plan asset. ...but then again, What Do I Know?
Blinky the 3-eyed Fish Posted July 11, 2003 Posted July 11, 2003 I don't see how it would be a qualifying asset simply because it's bank stock. If it's held underneath the guy's mattress, that's not a regulated financial instituion, that I know of at least, and it doesn't meet the criteria. So, it seems we agree. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
WDIK Posted July 11, 2003 Author Posted July 11, 2003 Thanks. There's strength in numbers. ...but then again, What Do I Know?
ljr Posted July 11, 2003 Posted July 11, 2003 I'd agree with Blinky. If that bank stock is held in a trust account for the retirement plan, it would be a qualifying asset. Good luck and let us know if you succeed.
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