Re-registration required?

[Guest cease]

I would like to know if a publicly traded corporation that, sponsors a qualified profit sharing plan with a 401(k) feature with participant-direction investments, adds its own common stock as an investment option for all contribution sources in the plan (ee salary reduction, match and discetionary profit sharing), does the corporation need to re-register with the SEC?

Thanks.

[QDROphile]

The plan interests and the employer stock that will be used in the plan must be registered, even if the plan will only trade on the market for shares it needs for the company stock investment fund. A propspectus will be necessary. Start the inquiry and the process with a qualified lawyer. Operation of the plan must take into account securities laws other than registration.

Also, if the company is a dividend payer, it should consider making the stock fund into an ESOP to get a dividend deduction. That is a farce, but the IRS has blessed it.

[Kirk Maldonado]

To amplify QDROphile's remarks about finding a qualified lawyer, the vast majority of securities lawyers don't understand the rules regarding registering the interests and the stock to be purchased under a Section 401(k) plan, and most ERISA attorneys don't understand anything at all about securities laws. Try to find somebody that understands both areas, so that they will have been through this process many times before.