Does Plan Termination have any affect on a Prohibited Transaction

[Dennis Povloski]

If a prohibited transaction occurs, and the plan terminates but the PT has not been corrected, is there any effect on the PT or correction method?

[Ron Snyder]

It would either become the correction or make a correction impossible, depending upon the facts. The difference between the 2 is potentially that if it makes correction impossible, IRS could impose a 100% excise tax.