Page:United States Statutes at Large Volume 120.djvu/1058

 PUBLIC LAW 109–280—AUG. 17, 2006

120 STAT. 1027

‘‘(I) TIME FOR MAKING INVESTMENT CHOICES.— A plan shall not be treated as failing to meet the requirements of this subparagraph merely because the plan limits the time for divestment and reinvestment to periodic, reasonable opportunities occurring no less frequently than quarterly. ‘‘(II) CERTAIN RESTRICTIONS AND CONDITIONS NOT ALLOWED.—Except as provided in regulations, a plan shall not meet the requirements of this subparagraph if the plan imposes restrictions or conditions with respect to the investment of employer securities which are not imposed on the investment of other assets of the plan. This subclause shall not apply to any restrictions or conditions imposed by reason of the application of securities laws. ‘‘(E) APPLICABLE DEFINED CONTRIBUTION PLAN.—For purposes of this paragraph— ‘‘(i) IN GENERAL.—The term ‘applicable defined contribution plan’ means any defined contribution plan which holds any publicly traded employer securities. ‘‘(ii) EXCEPTION FOR CERTAIN ESOPS.—Such term does not include an employee stock ownership plan if— ‘‘(I) there are no contributions to such plan (or earnings thereunder) which are held within such plan and are subject to subsection (k) or (m), and ‘‘(II) such plan is a separate plan for purposes of section 414(l) with respect to any other defined benefit plan or defined contribution plan maintained by the same employer or employers. ‘‘(iii) EXCEPTION FOR ONE PARTICIPANT PLANS.— Such term does not include a one-participant retirement plan. ‘‘(iv) ONE-PARTICIPANT RETIREMENT PLAN.—For purposes of clause (iii), the term ‘one-participant retirement plan’ means a retirement plan that— ‘‘(I) on the first day of the plan year covered only one individual (or the individual and the individual’s spouse) and the individual owned 100 percent of the plan sponsor (whether or not incorporated), or covered only one or more partners (or partners and their spouses) in the plan sponsor, ‘‘(II) meets the minimum coverage requirements of section 410(b) without being combined with any other plan of the business that covers the employees of the business, ‘‘(III) does not provide benefits to anyone except the individual (and the individual’s spouse) or the partners (and their spouses), ‘‘(IV) does not cover a business that is a member of an affiliated service group, a controlled group of corporations, or a group of businesses under common control, and

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