Pension Plan Investments and Transactions

[Gary]

One participant pension plan has $260,000 in assets from a 401(k) rollover and about $30,000 in plan assets.

The individual wants to use $160,000 in cash from the rollover account to purchase a piece of land as an investment.

And he also wants to take a loan of $80,000 from the rollover account.

1. It seems from my research that the purchase of land, assuming it is only for an investment and that the individual receives no cinsideration from the transaction (and there is no self-dealing), is an acceptable transaction.

2. It seems that he could take a loan of up to $50,000 or 50% of present value accrued benefit (as allowed by the plan), where the accrued benefit is equal to the sum of the 401(k) account balance and the accrued benefit in the DBPP.

Are there any other views on this?