LLC Units as Qualifying Employer Securities

[ERISA25]

Can units of an LLC count as Qualifying Employer Securities? That term is defined in ERISA 407 to include (i) stock, (ii) a marketable obligation or (iii) an interest in a publicly traded partnership. Technically, an LLC unit is not stock and I cannot find any advisory opinions on point.

I believe that a plan can hold LLC units, but I cannot find any specific guidance out there confirming this point.

[QDROphile]

The IRS disagrees that LLC interests can be qualifying employer and has published its position. I cannot remember the form of publication, and the actual analysis was whether or not LLC employees could participate in an ESOP.