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Prohibited Transaction Analysis


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Guest ERISA_kid
Posted

I would like to get some opinions on this situation.

Wife owns 25% interest in an LLC. Wife's Parents own a 50% interest in same LLC. Husband's IRA would like to purchase a 20% interest in this LLC. Under 4975, the stockholdings of Wife are clearly attributed to Husband for purposes of determining whether the LLC is treated as a "disqualified person". However, I'm not sure whether the stockholdings of Wife's Parents are also attributed to Husband. I would greatly appreciate any insight that anyone can provide.

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