Not a Party-In-Interest?

[mming]

Trustee/100% owner/participant wants to take $100K from his plan and either invest it in or lend it to a partnership/joint venture in which he will have a 30% interest. At first I thought he would be a disqualified person but after reading IRC sec. 4975, it seems OK as long as he owns less than 50% of the joint venture and the money is given to the business entity (and less than 50% of the joint venture is owned by the trustee's relatives or anyone providing services to the plan). Am I reading this correctly or would this be a prohibited transaction? Thanks for all help.

[Belgarath]

I think your initial instincts were correct. I can't be sure, but it appears to me that you are focusing solely on 4975(e)(2)(E). But this person is, at the very least, a fiduciary under (E)(2)(A), and therefore, in the absence of a specific exemption, you have a PT since you have a transaction described in ©(1) between the plan and a disqualified person as defined in (E).

There are some folks on these boards who are experts in PT's who will likely give you a better answer, but that's my 2 cents worth anyway.