401(k) Pension Protection Act of 1997

401(k) Pension Protection Act of 1997 - Amends the Employee Retirement Income Protection Act of 1974 with respect to the exemption of an eligible individual account plan from the limitations on investment of 401(k) pension plans in employer securities and employer real property.

Prohibits an employer from requiring that more than ten percent of employee contributions (elective salary deferrals) to the 401(k) plan be invested in such employer securities and real property. Exempts from the ten percent limit any plan that permits participating employees to determine whether to be invested in such employer securities and real property (thus leaving such employees free to assume the risk of undiversified investment in their employer). Provides for protection of employees assuming such risk by the application of the same prohibited transaction rules that apply to traditional defined benefit pension plans.