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IRS Guidance on New Employer Stock Diversification Requirements
Deloitte 
Dec. 12, 2006
Excerpt: Basically, IRC § 401(a)(35) requires defined contribution plans (other than certain ESOPs) that hold publicly traded employer securities to permit participants to divest ... after completing three years of service. According to Notice 2006-107, a participant completes three years of service immediately after the end of the plan's third vesting computation period pursuant to IRC § 411(a)(5).
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