Employer securities in a DB plan grow to more than 10%. Now what?

[katieinny]

A DB plan has held a small amount of employer stock for several years. The stock has done fairly well and we were just told that it represents about 18% of the plan assets.

The employer can sell enough stock to bring the level in the plan down to below 10%, but was there a prohibited transaction (and applicable penalties due) for the period that the employer stock exceeded the 10% limit?

[david rigby]

An earlier discussion on this topic:

http://benefitslink.com/boards/index.php?showtopic=29366