K-t-F Posted September 13, 2022 Share Posted September 13, 2022 Single member company wants to invest in a UK based company. The company is not publicly traded. Are there mixed thoughts? Can it be done? Thanks Its not easy being green Link to comment Share on other sites More sharing options...
Peter Gulia Posted September 13, 2022 Share Posted September 13, 2022 K-t-F, are you asking about whether a retirement plan (or some other employee-benefit plan) may invest? Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
K-t-F Posted September 13, 2022 Author Share Posted September 13, 2022 A 401(k) plan ... single member... no rank and file employees Its not easy being green Link to comment Share on other sites More sharing options...
Peter Gulia Posted September 13, 2022 Share Posted September 13, 2022 To tax-qualify under Internal Revenue Code § 401(a) and for other U.S. tax law reasons, the plan’s trustee should be a U.S. person. If the plan were ERISA-governed, a fiduciary would obey ERISA § 404(b)’s command to maintain the indicia of all plan assets within the jurisdiction of U.S. Federal courts. Even for a plan not ERISA-governed, a prudent trustee might maintain in the United States (and, preferably, in the State in which the plan’s trust has its situs) the record of the UK company’s securities the plan’s trust owns. That includes a certificate (if there is one). If there is no established and efficient market for the securities the plan’s trust invests in, consider what valuation expert the plan’s administrator or trustee would engage to set—at least yearly, and whenever needed midyear to allow a transaction—an imaginary fair-market value for the securities of the UK company. acm_acm and Luke Bailey 2 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
Guy on a Limb Posted November 29, 2022 Share Posted November 29, 2022 So since this is an owner only plan you believe it is ok because it is not subject to the ERISA indicia of ownership requirement? Thank you! Link to comment Share on other sites More sharing options...
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