non-cash contributions

[Earl]

I have a client that has heard of someone getting a PLR OK'ing non-cash contributions to a DB Plan.

Any ideas on the characteristics of the asset(s) that would make the IRS rule favorably? (or other thoughts on the subject?)

Thanks

[Andy the Actuary]

As they say, believe none of what you hear and half of what you see. This one is P.D.C. -- it is acceptable to make in-kind contributions to a profit sharing plan but not to a DC or DB plan. Before you get too excited, ask your client to obtain a copy of the PLR or at least of the citing. If you believe the PLR does apply contrary to my emphatic "no can do," make sure the circumstances the PLR cites are consistent with your client's.

Please see the attached.

In_Kind_Contributions.pdf

[SoCalActuary]

I have a client that has heard of someone getting a PLR OK'ing non-cash contributions to a DB Plan.

Any ideas on the characteristics of the asset(s) that would make the IRS rule favorably? (or other thoughts on the subject?)

Thanks

In the prior recession, Govt Motors contributed stock in EDS to their pension plan. But they had attorneys & politicians to back it up.