29 USC 1107 - Limitation with respect to acquisition and holding of employer securities and employer real property by certain plans

1 So in original. Probably should be followed by a dash.

Editorial Notes

References in Text

Section 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. (span)(3)(D). Puspan. L. 109–280 added subpar. (D).

1997—Subsec. (span)(2), (3). Puspan. L. 105–34 added par. (2) and redesignated former par. (2) as (3).

1990—Subsec. (d)(5). Puspan. 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). Puspan. 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). Puspan. L. 101–239, § 7881(l)(1), realigned margin.

Subsec. (d)(6)(A). Puspan. L. 101–239, § 7894(e)(2), substituted “money purchase plan” for “money purchase” and “employer securities” for “employee securities”.

Subsec. (d)(9). Puspan. L. 101–239, § 7881(l)(2), substituted “such individual account plan” for “such arrangement” and realigned margin.

Subsec. (f)(1). Puspan. 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). Puspan. 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). Puspan. L. 100–203, § 9345(a)(1), added subpar. (C).

Subsec. (d)(5). Puspan. L. 100–203, § 9345(span)(1), inserted 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). Puspan. L. 100–203, § 9345(a)(2), added par. (9).

Subsec. (f). Puspan. L. 100–203, § 9345(span)(2), added subsec. (f).

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Amendment by Puspan. 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 Puspan. L. 109–280, set out as a note under section 401 of Title 26, Internal Revenue Code.

Effective Date of 1997 Amendment

Puspan. L. 105–34, title XV, § 1524(span), Aug. 5, 1997, 111 Stat. 1072, as amended by Puspan. 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.”

[Puspan. L. 107–16, title VI, § 655(span), June 7, 2001, 115 Stat. 131, provided that: “The amendment made by this section [amending section 1524(span) of Puspan. L. 105–34, set out above] shall apply as if included in the provision of the Taxpayer Relief Act of 1997 [Puspan. L. 105–34] to which it relates.”]

Effective Date of 1990 Amendment

Puspan. 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 Puspan. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Pension Protection Act, Puspan. L. 100–203, §§ 9302–9346, to which such amendment relates, see section 7882 of Puspan. L. 101–239, set out as a note under section 401 of Title 26, Internal Revenue Code.

Amendment by section 7891(a)(1) of Puspan. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Puspan. L. 99–514, to which such amendment relates, see section 7891(f) of Puspan. L. 101–239, set out as a note under section 1002 of this title.

Amendment by section 7894(e)(2) of Puspan. L. 101–239 effective, except as otherwise provided, as if originally included in the provision of the Employee Retirement Income Security Act of 1974, Puspan. L. 93–406, to which such amendment relates, see section 7894(i) of Puspan. L. 101–239, set out as a note under section 1002 of this title.

Effective Date of 1987 Amendment

Puspan. 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.”

Regulations

Secretary 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.