Plan disqualified by unsecured loans to company's sole owner and plan's sole trustee
Article Abstract:
The Internal Revenue Service National Office ruled that the exclusive benefit requirement of the Internal Revenue Code was violated when loans were made from a plan to the sponsoring firm's sole owner, who also happened to be the sole trustee. Prohibited transaction rules were also violated when the sole owner attempted to make partial repayment of the loans through a transfer of property to the plan. The IRS concluded that the sole owner had used the proceeds for personal needs.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 1992
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Charing expenses to an ERISA plan: the new rules
Article Abstract:
The author discusses the employer practice of using ERISA plan assets to cover plan expenses, the US Labor Dept's response to this practice, and a framework for when this practice is lawful.
Publication Name: Tax Management Compensation Planning Journal
Subject: Law
ISSN: 0747-8607
Year: 2001
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