Prohibited Transaction


Also found in: Acronyms.

Prohibited Transaction

A transaction that would cause a tax deferred structure under ERISA to lose its deferred status. A prohibited transaction is any transaction involving a retirement account and a disqualified person.
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In a two-hour live Webcast, a seasoned panel of thought leaders and professionals assembled by The Knowledge Group will offer the audience with an in-depth discussion of the fundamentals as well as updates of ERISA's prohibited transactions rule.
1001-3(b), a significant modification could trigger a prohibited transaction resulting in tax (Sec.
Importantly, the court held that the initial purchase of LLC units by Ellis's IRA was not a prohibited transaction.
ERISA requires that the fees paid to plan service providers be reasonable with respect to the services performed and Labor, in its implementation of PTE 2006-16, its prohibited transaction class exemption for securities lending, specifically requires that compensation received by the parties involved in the securities lending transaction should be reasonable.
sanctions requirements, insurers must make sure that policies that otherwise provide worldwide coverage contain explicit exclusions for proscribed beneficiaries or prohibited transactions.
The key to determining if the payment of premiums to a captive insurer is a prohibited transaction is establishing if the captive insurer is a party in interest.
This was the only issue on which the Supreme Court granted certiorari, with the Court, in a unanimous opinion written by Justice Thomas, finding for Harris Trust and ruling that ERISA permits a claim for relief both against the errant fiduciary and other parties to a prohibited transaction.
The new act allows property that was converted involuntarily to be disregarded as a prohibited transaction.
Where an insurance company's general account contained no plan assets, it followed that ERISA's fiduciary standards could not be invoked and ERISA's prohibited transaction rules would not apply.
Bianchi advises corporate, not-for-profit, governmental, and individual clients on a broad range of executive compensation and employee benefits issues, including qualified and nonqualified retirement plans, stock and stock-based compensation arrangements, ERISA fiduciary and prohibited transaction issues, benefit-related aspects of mergers and acquisitions, and health and welfare plans.
When using IRA funds to invest in a business, an IRA owner needs to be aware of the Code's prohibited transaction rules.