-8-
provides that the tax shall be paid by any disqualified person
who participates in a prohibited transaction (other than a
fiduciary acting only as such). Sec. 4975(a).
4(...continued)
prohibited transaction occurs; and
(B) in the case of the tax imposed by subsection (b),
shall be the highest fair market value during the
taxable period.
5 In sec. 4975(c)(1), Congress enumerated six categories of
prohibited transactions. Sec. 4975(c)(1) provides that
(1) General Rule. For purposes of this section, the
term "prohibited transaction" means any direct or
indirect --
(A) sale or exchange, or leasing, of any
property between a plan and a disqualified
person;
(B) lending of money or other extension of
credit between a plan and a disqualified
person;
(C) furnishing of goods, services, or
facilities between a plan and a disqualified
person;
(D) transfer to, or use by or for the
benefit of, a disqualified person of the
income or assets of a plan;
(E) act by a disqualified person who is a
fiduciary whereby he deals with the income ro
assets of a plan in his own interest or for
his own account; or
(F) receipt of any consideration for his own
personal account by any disqualified person
who is a fiduciary from any party dealing
with the plan in connection with a
transaction involving the income or assets of
the plan.
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