an economic transaction directly, or indirectly, involving plan assets and parties related to the plan
An improper transaction or event involving an IRA or its assets that will result in excise (penalty) taxes or possible loss of the IRA's tax-favored status.
ERISA prohibits a fiduciary from causing a plan to enter directly or indirectly into transactions with certain persons defined as “parties-in-interestâ€. Prohibited transactions include: (1) sale, exchange, or leasing of any property between the plan and a party-in-interest; (2) lending of money or other extension of credit between the plan and a party-in-interest, (3) furnishing of goods, services, or facilities between the plan and a party-in-interest; (4) transfer to or use by or for the benefit of a party-in-interest of any assets of the plan; or (5) the acquisition, on behalf of the plan, of any employer security or employer real property not otherwise specifically exempted by law or regulation.
Activities regarding treatment of plan assets by fiduciaries that are prohibited by ERISA. This includes transactions with a party-in-interest, including, sale, exchange, lease, or loan of plan securities or other properties.
Generally, any direct or indirect dealing or transaction between a qualified plan or IRA and a disqualified person or party in interest.
An individual retirement account (IRA) transaction forbidden by the Internal Revenue Code. Examples of prohibited transactions include borrowing against an IRA, using an IRA as collateral, and investing IRA funds in collectibles.
A prohibited transaction is an action in reference to an IRA that is forbidden by the Internal Revenue Code.
ERISA defines the following transactions as prohibited between a pension plan and a party in interest: the sale, exchange or leasing of any property; a loan or other extension of credit; and the furnishing of goods or services. Other prohibited transactions include the transfer of plan assets to a party in interest or use of plan assets by a party in interest, and the acquisition of employer real property in excess of limits set by ERISA.
