Erisa Section 407

The employee retirement income security act of 1974 erisa pub l.
Erisa section 407. 93 406 to which such amendment relates see section 7894 i of pub. 101 239 set out as a note under section 1002 of this title. Plans that hold publicly traded employer securities.
For purposes of this section and section 407 d 5 of the employee retirement income security act of 1974 the act the term qualifying employer security means an employer security which is. Section 407 d 5 of erisa provides in part that the term qualifying employer security includes an employer security which is stock. Limitation with respect to acquisition and holding of employer securities and employer real property by certain plans text from cornell legal information institute.
In addition sections 406 and 407 a of erisa impose restrictions on plan investments in employer securities as defined in section 407 d 1 of erisa and employer real property as defined in section 407 d 2 of erisa. 18 is a federal united states tax and labor law that establishes minimum standards for pension plans in private industry. Section 407 a 1 of erisa provides in part that a plan may not acquire or hold any employer security which is not a qualifying employer security.
Or 2 a marketable obligation as defined in paragraph b of this section and section 407 e of the act. Section 406 a of the employee retirement income security act of 1974 erisa broadly prohibits plan fiduciaries from causing a plan to enter into either a direct or an indirect transaction involving the plan or its assets that have the potential for conflicts of interest. Section 401 a 35 g iv provides that the term employer security has the meaning given such term by section 407 d 1 of erisa.
829 enacted september 2 1974 codified in part at 29 u s c. 101 239 effective except as otherwise provided as if originally included in the provision of the employee retirement income security act of 1974 pub. 29 usc 1107.
Erisa section 407 a 3 provides that a qualified plan may not maintain more than 10 of its market value in qualifying employer securities and qualifying employer real property. Erisa section 406 provides that the acquisition of any qualifying employer real property by a plan in excess of the 10 rule is a prohibited transaction. In addition pursuant to erisa section 404 a 2 these plans do not violate erisa s diversification and to the extent it requires diversification prudence requirements.