- 11 - the exclusive authority to manage and control plan assets." H. Conf. Rept. 93-1280, at 294 (1974), 1974-3 C.B. 415, 455 (emphasis added); S. Rept. 93-383, supra at 95, 1974-3 C.B. (Supp.) at 173. Petitioner did not use any of the "authority, control, or responsibility which makes [him] a fiduciary" to lend the $60,000 to Tag Land. See sec. 54.4975-6(a)(5), Qualified Pension Plan Excise Tax Regs. Petitioner was absent at the trustee's discussions regarding the advisability of the loan to Tag Land, and the Trust Investment Committee of the trustee independently approved the investment. See sec. 54.4975-6(a)(6), Example (3), Qualified Pension Plan Excise Tax Regs. Accordingly, the trustee, rather than the plan administrator, "[dealt] with" the "income or assets" of the Plan in the subject transaction. The Plan explicitly states that the trustee should not cause the trust to engage in any prohibited transaction under the Employee Retirement Income Security Act of 1974 (ERISA), Pub. L. 93-406, 88 Stat. 829, provisions.3 It requires the employer to 3 The Plan document provides that it is the trustee that shall not engage in or cause the Trust to engage in any transaction if it knows or should know, through normal business sources * * * that such transaction constitutes a prohibited transaction under ERISA which has not been exempted by the Secretary of Labor (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011