401(k) Contributions made with Stock (Not Employer's)

[Guest Jim_Mauro9]

I have a Plan sponsor who has asked if he can make his contribution to the 401(k) Plan using some common stock he owns. This is a self-employed owner, so he wants to transfer his ownership of some common stock to the Plan, in lieu of a cash payment.

Is this prohibited?

I've seen guidance on "property" transfer, but I don't think widely traded stock would be considered property.