Sec. 418. Certain securities treated as publicly traded in case of employee stock ownership plans
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Section 401(a)(35) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: In the case of an applicable defined contribution plan which is an employee stock ownership plan, an employer security shall be treated as described in subparagraph (G)(v) if— the security is the subject of priced quotations by at least 4 dealers, published and made continuously available on an interdealer quotation system (as such term is used in section 13 of the Securities Exchange Act of 1934) which has made the request described in section 6(j) of such Act to be treated as an alternative trading system, the security is not a penny stock (as defined by section 3(a)(51) of such Act), the security is issued by a corporation which is not a shell company (as such term is used in section 4(d)(6) of the Securities Act of 1933), a blank check company (as defined in section 7(b)(3) of such Act), or subject to bankruptcy proceedings, the security has a public float (as such term is used in section 240.12b-2 of title 17, Code of Federal Regulations) which has a fair market value of at least $1,000,000 and constitutes at least 10 percent of the total shares issued and outstanding. in the case of a security issued by a domestic corporation, the issuer publishes, not less frequently than annually, financial statements audited by an independent auditor registered with the Public Company Accounting Oversight Board established under the Sarbanes-Oxley Act of 2002, and in the case of a security issued by a foreign corporation, the security is represented by a depositary share (as defined under section 240.12b-2 of title 17, Code of Federal Regulations), or is issued by a foreign corporation incorporated in Canada and readily tradeable on an established securities market in Canada, and the issuer— is subject to, and in compliance with, the reporting requirements of section 13 or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)), is subject to, and in compliance with, the reporting requirements of section 230.257 of title 17, Code of Federal Regulations, or is exempt from such requirements under section 240.12g3–2(b) of title 17, Code of Federal Regulations. .
The amendments made by this section shall apply to plan years beginning after December 31, 2029.
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Sec. 418
Certain securities treated as publicly traded in case of employee stock ownership plans
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