Avoid a fine: Let employees know about company stock in 401(k) — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Avoid a fine: Let employees know about company stock in 401(k)

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If your organization offers its own stock as an investment option for employees’ 401(k) plans, let them know when they’re eligible to sell it. Last year’s Pension Protection Act says employees who buy company stock with their own contributions can sell it at any time, and those who add to it with company contributions can diversify out of it after they have worked for the firm for three years.

In a final rule published in August, the U.S. Labor Department could fine your business $100 a day if you don’t give employees 30 days’ notice to let them know when it’s OK to sell.

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