Matching Contributions in Employer Securities

[Guest LBarr]

Hi!

Please let me know your thought regarding the following:

A plan has taken the position that it is exempt from registration because it only provides for matching contributions in employer securities. Will a right of a participant to reinvest dividends and/or repurchase any shares of employer securities sold [pending clarification of IRS Notice 2006-107] constitute an investment decision that will jeopardize the exemption?

Thanks