Guest kredlin Posted November 1, 2002 Posted November 1, 2002 The definition of a disqualified person includes a person who provides services to an ESOP. Is a lender a disqualified person as a result of loaning money to the ESOP? I can see an argument that loaning of money is providing a service. However, I have seen some commentary that seems to imply simply loaning money is not enough to be considered a disqualified person.
E as in ERISA Posted November 1, 2002 Posted November 1, 2002 It is my understanding that you generally have to wear "two hats" in order for a prohibited transaction to occur.
Kirk Maldonado Posted November 1, 2002 Posted November 1, 2002 The event that causes a party to become a disqualified person is not a prohibited transaction. Kirk Maldonado
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