Source: https://casetext.com/statute/united-states-code/title-29-labor/chapter-18-employee-retirement-income-security-program/subchapter-i-protection-of-employee-benefit-rights/subtitle-b-regulatory-provisions/part-4-fiduciary-responsibility/section-1107-limitation-with-respect-to-acquisition-and-holding-of-employer-securities-and-employer-real-property-by-certain-plans
Timestamp: 2020-03-29 17:54:19
Document Index: 237539083

Matched Legal Cases: ['§ 1107', '§ 1107', '§9345', '§7881', '§1', '§1524', '§901', '§7891', '§7881', '§7894', '§7881', '§7881', '§7881', '§1524', '§655', '§655', '§2', '§9345']

Section 1107 - Limitation with respect to acquisition and holding of employer securities and employer real property by certain plans, 29 U.S.C. § 1107 | Casetext Search + Citator
29 U.S.C. § 1107
(1) A plan may not acquire or hold-
(A) After December 31, 1984, a plan may not hold any qualifying employer securities or qualifying employer real property (or both) to the extent that the aggregate fair market value of such securities and property determined on December 31, 1984, exceeds 10 percent of the greater of-
(A) After December 31, 1979, a plan may not hold any employer securities or employer real property in excess of the amount specified in regulations under subparagraph (B). This subparagraph shall not apply to a plan after the earliest date after December 31, 1974, on which it complies with such regulations.
(A) If this paragraph applies to an eligible individual account plan, the portion of such plan which consists of applicable elective deferrals (and earnings allocable thereto) shall be treated as a separate plan-
(i) This paragraph shall apply to any eligible individual account plan if any portion of the plan's applicable elective deferrals (or earnings allocable thereto) are required to be invested in qualifying employer securities or qualifying employer real property or both-
(3) CROSS REFERENCES.-
(1) A plan which makes the election, under paragraph (3) shall be treated as satisfying the requirement of subsection (a)(3) if and only if employer securities held on any date after December 31, 1974 and before January 1, 1985 have a fair market value, determined as of December 31, 1974, not in excess of 10 percent of the lesser of-
(A) The term "eligible individual account plan" means an individual account plan which is (i) a profit-sharing, stock bonus, thrift, or savings plan; (ii) an employee stock ownership plan; or (iii) a money purchase plan which was in existence on September 2, 1974, and which on such date invested primarily in qualifying employer securities. Such term excludes an individual retirement account or annuity described in section 408 of title 26.
(4) The term "qualifying employer real property" means parcels of employer real property-
(5) The term "qualifying employer security" means an employer security which is-
(6) The term "employee stock ownership plan" means an individual account plan-
For purposes of subsection (d)(5), the term "marketable obligation" means a bond, debenture, note, or certificate, or other evidence of indebtedness (hereinafter in this subsection referred to as "obligation") if-
(1) Stock satisfies the requirements of this paragraph if, immediately following the acquisition of such stock-
(2) Until January 1, 1993, a plan shall not be treated as violating subsection (a) solely by holding stock which fails to satisfy the requirements of paragraph (1) if such stock-
Pub. L. 93-406Sept. 2, 1974, 88 Stat. 880; Pub. L. 100-203, title IX, §9345(a)(1), (2), (b), Dec. 22, 1987, 101 Stat. 1330-373; Pub. L. 101-239, title VII, §§7881(l)(1)-(4), 7891(a)(1), 7894(e)(2), Dec. 19, 1989, 103 Stat. 2443, 2445, 2450; Pub. L. 101-540, §1, Nov. 8, 1990, 104 Stat. 2379; Pub. L. 105-34, title XV, §1524(a), Aug. 5, 1997, 111 Stat. 1071; Pub. L. 109-280, title IX, §901(b)(2), Aug. 17, 2006, 120 Stat. 1032.
REFERENCES IN TEXTSection 10211(c)(2)(A) of the Revenue Act of 1987 (Public Law 100-203), referred to in subsec. (d)(5)(C), is set out as a note under section 7704 of Title 26, Internal Revenue Code.
AMENDMENTS 2006-Subsec. (b)(3)(D). Pub. L. 109-280 added subpar. (D).1997-Subsec. (b)(2), (3). Pub. L. 105-34 added par. (2) and redesignated former par. (2) as (3). 1990-Subsec. (d)(5). Pub. L. 101-540 amended par. (5) generally. Prior to amendment, par. (5) read as follows: "The term 'qualifying employer security' means an employer security which is stock or a marketable obligation (as defined in subsection (e)). After December 17, 1987, in the case of a plan other than an eligible individual account plan, stock shall be considered a qualifying employer security only if such stock satisfies the requirements of subsection (f)(1)."1989-Subsec. (d)(3)(A), (6)(A), (7). Pub. L. 101-239, §7891(a)(1), substituted "Internal Revenue Code of 1986" for "Internal Revenue Code of 1954", which for purposes of codification was translated as "title 26" thus requiring no change in text.Subsec. (d)(3)(C). Pub. L. 101-239, §7881(l)(1), realigned margin.Subsec. (d)(6)(A). Pub. L. 101-239, §7894(e)(2), substituted "money purchase plan" for "money purchase" and "employer securities" for "employee securities". Subsec. (d)(9). Pub. L. 101-239, §7881(l)(2), substituted "such individual account plan" for "such arrangement" and realigned margin. Subsec. (f)(1). Pub. L. 101-239, §7881(l)(3)(A), (4), substituted "paragraph" for "subsection" and "if, immediately following the acquisition of such stock" for "if".Subsec. (f)(3). Pub. L. 101-239, §7881(l)(3)(B), struck out par. (3) which read as follows: "After December 17, 1987, no plan may acquire stock which does not satisfy the requirements of paragraph (1) unless the acquisition is made pursuant to a legally binding contract in effect on such date."1987-Subsec. (d)(3)(C). Pub. L. 100-203added subpar. (C). Subsec. (d)(5). Pub. L. 100-203inserted at end "After December 17, 1987, in the case of a plan other than an eligible individual account plan, stock shall be considered a qualifying employer security only if such stock satisfies the requirements of subsection (f)(1)."Subsec. (d)(9). Pub. L. 100-203added par. (9).Subsec. (f). Pub. L. 100-203added subsec. (f).
EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109-280 applicable to plan years beginning after Dec. 31, 2006, with special rules for collectively bargained agreements and certain employer securities held in an ESOP, see section 901(c) of Pub. L. 109-280, set out as a note under section 401 of Title 26, Internal Revenue Code.
EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105-34, title XV, §1524(b), Aug. 5, 1997, 111 Stat. 1072, as amended by Pub. L. 107-16, title VI, §655(a), June 7, 2001, 115 Stat. 131, provided that:"(1) IN GENERAL.-Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to elective deferrals for plan years beginning after December 31, 1998."(2) NONAPPLICATION TO PREVIOUSLY ACQUIRED PROPERTY.-The amendments made by this section shall not apply to any elective deferral which is invested in assets consisting of qualifying employer securities, qualifying employer real property, or both, if such assets were acquired before January 1, 1999."[Pub. L. 107-16, title VI, §655(b), June 7, 2001, 115 Stat. 131, provided that: "The amendment made by this section [amending section 1524(b) of Pub. L. 105-34, set out above] shall apply as if included in the provision of the Taxpayer Relief Act of 1997 [Pub. L. 105-34] to which it relates."]
EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101-540, §2, Nov. 8, 1990, 104 Stat. 2379, provided that: "The amendment made by section 1 [amending this section] shall apply to interests in publicly traded partnerships acquired before, on, or after January 1, 1987."
EFFECTIVE DATE OF 1989 AMENDMENT Amendment by section 7881(l)(1)-(4) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Pub. L. 100-203-9346, to which such amendment relates, see section 7882 of Pub. L. 101-239, set out as a note under section 401 of Title 26, Internal Revenue Code.Amendment by section 7891(a)(1) of Pub. L. 101-239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99-5141986, to which such amendment relates, see section 7891(f) of Pub. L. 101-239, set out as a note under section 1002 of this title.Amendment by section 7894(e)(2) of Pub. L. 101-239 effective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, Pub. L. 93-406, to which such amendment relates, see section 7894(i) of Pub. L. 101-239, set out as a note under section 1002 of this title.
EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100-203, title IX, §9345(a)(3), Dec. 22, 1987, 101 Stat. 1330-373, provided that: "The amendments made by this subsection [amending this section] shall apply with respect to arrangements established after December 17, 1987."
REGULATIONSSecretary authorized, effective Sept. 2, 1974, to promulgate regulations wherever provisions of this part call for the promulgation of regulations, see sections 1031 and 1114 of this title.
Section 1108 - Exemptions from prohibited transactions