DDB BN

A self employed owner only 1 person plan has mortgages as investments within the plan. The owner died and his wife continues to take RMD after his death. The plan has not been terminated as the wife beneficiary wants to keep it open until all of the mortgage investments have been repaid. The business still has activity at this time. The wife beneficiary would like to purchase one of the mortgages from the plan personally. Since this is a 1 person owner only plan, is it subject to the prohibited transaction rules? (The mortgage is $150,000 and the RMD is roughly $40,000 each year.)

Thank you. That is what I had concluded, just wanted confirmation as I was informed otherwise by another admin.

There were late deferrals in 2017. The late deferrals were deposited into the plan during 2017 as well. The earnings on the late 2017 deferrals were deposited in 2018. The late deferrals were reported on the 2017 5500-SF. Should they also be reported on the 2018 5500-SF even though the late deferrals were deposited in the prior year (2017)? Is the deposit of late deferrals only considered corrected when the late earnings are deposited?