- 20 -
As stated previously, respondent based her determination of
prohibited transactions on section 4975(c)(1)(A) and (E).
Section 4975(c)(1)(A) defines a prohibited transaction as
including any "sale or exchange, or leasing, of any property
between a plan[11] and a disqualified person".12 Section
11
A "plan" is defined by sec. 4975(e)(1) to encompass an
individual retirement account as described under sec. 408.
12
As applicable to the following discussion, sec. 4975(e)(2)
defines a disqualified person as:
(A) a fiduciary;
* * * * * * *
(C) an employer any of whose employees are covered
by the plan;
(D) an employee organization, any of whose members
are covered by the plan;
* * * * * * *
(G) a corporation, partnership, or trust or estate
of which (or in which) 50 percent or more of--
(i) the combined voting power of all
classes of stock entitled to vote or the
total value of shares of all classes of stock
of such corporation,
(ii) the capital interest or profits
interest of such partnership, or
(iii) the beneficial interest of such
trust or estate, is owned directly or
indirectly, or held by persons described in
subparagraph (A), (B), (C), (D), or (E);
* * * * * * *
(H) an officer, director (or an individual having
(continued...)
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