Guest And another thing ... Posted February 27, 2002 Posted February 27, 2002 My company is considering engaging a financial advice provider for our 401(k) plan. We are considering a provider that we own a small part of (it could be around 10%). Would it be a prohibited transaction to hire that provider?
Guest Bud Posted March 1, 2002 Posted March 1, 2002 At some level of ownership, your company and the service provider would be considered one entity. At that point, the service provider would be a party in interest like the company. 10% of a service provider may be enough for it to be a party in interest. You should divest or use another provider.
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