Prohibited Transaction

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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.
References in periodicals archive ?
Shane also advises clients on a wide variety of ERISA issues, including plan reporting and disclosure, participation, vesting, funding, benefit accrual, fiduciary responsibility, prohibited transactions, plan termination, merger and employer withdrawal liability issues.
Fiduciary Responsibility and Prohibited Transactions -- The Basics
Assists City officials and employees to maintain awareness of ethical standards and appearance of fairness standards, and to avoid potential conflicts of interest, prohibited transactions and the appearance of prohibited transactions.
The Tax Court held that compensation received by a taxpayer from a limited liability company (LLC) that was almost entirely owned by the taxpayer's individual retirement account (IRA) resulted in several types of self-dealing prohibited transactions.
It is believed that lack of controls at the bank helped nations such as Cuba, Iran, Libya, Myanmar and Sudan to move about USD660m in prohibited transactions through US financial institutions.
Given the broad nature of prohibited transactions on the part of fiduciaries of pension and other employee benefit plans provided for by the Employee Retirement Income Security Act of 1974 (ERISA), Congress also provided an administrative exemption procedure which has since been utilized by the Department of Labor (and, early on, the Internal Revenue Service) to grant prohibited transaction class exemptions.
Some prohibited transactions, such as life or health policies issued to a Cuban citizen, or designating a Cuban citizen as beneficiary, are relatively easy to understand and identify.
The Department of Labor issued an updated version of its Voluntary Fiduciary Correction Program in April, adding transactions that can be corrected under the program and expanding the ability to obtain relief from prohibited transactions.
Steven Pinter, a recognized expert and authority on economic sanctions, was Chief of Licensing at OFAC between 1987 and 2002, during which time he was a key participant in formulating licensing policies, legal interpretations, and was the prime arbiter and supervisor of decisions to authorize otherwise prohibited transactions and activities involving sanctions targets such as the unblocking of funds and other assets.
The seminar program will emphasize the obligation of plan sponsors and other fiduciaries to understand the terms of their plans, select and monitor service providers carefully, make timely contributions to fund benefits, avoid prohibited transactions, and make timely disclosures to workers, their beneficiaries and the government.
Included are in-depth, practical discussions about requirements and obligations of fiduciary status, prohibited transactions and exemptions, the role of ESOPs, and more.
government has blocked the property of, and prohibited transactions with, designated terrorists, terrorist organizations, and individuals and governments that support terrorism.