Party in interest

Party in interest

An ERISA-specified individual—such as an administrator, officer, fiduciary, trustee, custodian, or counsel—who is prohibited from making certain transactions involving a retirement plan. A trustee, for example, would be prohibited from using an IRA as collateral for a loan.

Party in Interest

Anyone prohibited under ERISA from using a retirement plan for one's own interests. For example, the investment manager of a 401(k) may not use that 401(k) as collateral on a personal loan. See also: Fiduciary Responsibility.
References in periodicals archive ?
ERISA PROHIBITS A FIDUCIARY FROM ENGAGING in certain transactions with a party in interest.
Supreme Court made it clear that a nonfiduciary party in interest (such as a CPA) can be held liable under ERISA for participating in a prohibited transaction.
ERISA defines party in interest to generally include, among others, employers that sponsor plans and people who have significant dealings with ERISA-covered plans, including anyone providing services to a plan.
The Department of Labor or a plan participant may sue any fiduciary or party in interest who engages in a prohibited transaction.
Supreme Court decision in Salomon Brothers, it was an open question whether a nonfiduciary party in interest could be held liable under ERISA for "participating" in a prohibited transaction.
In this capacity, Salomon was a party in interest, but not a fiduciary.
Because a CPA who provides services to a plan is an ERISA party in interest, the fees are considered a transfer of property from the plan to a party in interest.