Prohibited Transactions

What this video covers

• Who qualifies as a party in interest under the Employee Retirement Income Security Act (ERISA), including fiduciaries, service providers, 50%+ owners, sponsoring employers, and relatives
• The five prohibited dealings with parties in interest: sale or lease of property, lending money or extending credit, furnishing goods or services, transfer of plan assets for their benefit, and the 10% limit on employer securities or real property
• The three self-dealing bans that apply personally to fiduciaries: dealing with plan assets for their own interest, acting on behalf of an adverse party, and receiving personal consideration or kickbacks
• Why prohibited-transaction rules are strict liability, and why intent does not matter on the exam even when a transaction appears harmless or well-meaning
• The necessary-services exemption: reasonable compensation for necessary services with a reasonable contract terminable on short notice
• The participant-loan exemption: loans available on a reasonably equivalent basis, at a reasonable interest rate, and adequately secured
• How to contrast prohibited employer loans with permissible participant loans, and how to recognize the recordkeeper-fee exemption in disguise