### Question
Can you define what taxable event means?


### Answer
**Taxable event** is defined as the following in *26 U.S.C. § 4978B*:

> any of the following dispositions:


#### (1) Dispositions within 3 years


Any disposition of any employer securities by an employee stock ownership plan within 3 years after such plan acquired section 133 securities if—


(A) the total number of employer securities held by such plan after such disposition is less than the total number of employer securities held after such acquisition, or


(B) except to the extent provided in regulations, the value of employer securities held by such plan after the disposition is 50 percent or less of the total value of all employer securities as of the time of the disposition

#### Citation:
  - *26 U.S.C. § 4978B*
  - Heading: **Subtitle D-Miscellaneous Excise Taxes > CHAPTER 43-QUALIFIED PENSION, ETC., PLANS**

