PensionNewbee Posted August 20, 2003 Posted August 20, 2003 Can a defined benefit plan invest in real estate? A sole owner of a company has a defined benefit plan. He is the trustee. He wants to invest in pre-construction homes - buy them as they are being built, then turn around and sell them when completed. This is to be done, of course, in the name of the plan. About 10-20% of the plan's assets would be used to do this. Does this create a problem under ERISA, DOL, or PT rules?
Guest tonymascia1 Posted August 21, 2003 Posted August 21, 2003 There's nothing wrong with this, per se. If the rest of the fund is diversified and liquid, there shouldn't be a problem --- unless this owner has more than a "passing interest" in the construction and development of these properties.
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