Private Securities as a Plan Asset

[Guest xxiretirementservices]

Recently I meet with the new owner of a DC plan client. He surprised me by saying he wants to create a private security and bring it into the plan as an investment option for the HCE / owner group. These are shareholders. His plan seems to be a form of arbitrage using a life insurance policy on the life of an 82-year-old ex-owner who has agreed to this. I'm still trying to understand and get details on the structure, but I am asking the forum if anyone has experience with this in the plan document area, filing for determination, basic operational questions, pension law, etc. THANKS

[QDROphile]

If you have any responsibility for legal compliance or investment management for the plan, don't touch it.