Prohibited Transaction

[k man]

A plan has a partnership as an investment and received a capital call. by mistake one of the owners of the plan sponsor sent the money for to satisfy the capital call. now he needs to be reimbursed by the plan. how can he do this without running afoul of the PT rules?

[GBurns]

There must be more to this.

In whose name is the investment held ?

On whom (name) was the call made ?

Since the call was not made to or in his name, why did he think that it would beokay to pay a bill that was not in his name etc ?

Why did the partnership accept a capital contribution from a party who is not an equity holder ?

Probably the simplest thing is to have the partnership return the funds and have the plan respond to the call as it should have.

[K2retire]

Simplest from the plan's perspective, yes. Now try getting the partnership to agree to it....