Prohibited Transactions

What this video covers

• Who counts as a party in interest, including the broad definition of "employer" that sweeps in any employee, officer, or director
• Why lineal descendants (children and grandchildren) of fiduciaries are parties in interest regardless of age or independence
• Which outsiders are NOT parties in interest: customers, competitors, and government regulators
• The seven specific prohibited transactions: property sales, loans, goods and services, asset transfers, self-dealing, acting for adverse parties, and kickbacks
• The necessary services exception: when reasonable compensation for genuine plan work is allowed
• Why self-dealing and kickbacks have zero reasonable-compensation exception
• The split regulatory roles: Department of Labor (DOL) enforces and grants exemptions, Internal Revenue Service (IRS) imposes excise taxes