Guest Pennysaver Posted March 25, 2009 Posted March 25, 2009 Does the DOL provide a safe harbor with respect to prohibited transactions that occur when a plan service provider gives nonmonetary compensation greater than $250 to a plan representative who is an employee of the plan sponsor? If so, can anyone point me to the relevant authority/guidance on this issue?
Guest Sieve Posted March 26, 2009 Posted March 26, 2009 I recall a PLR or some guidance IRS from 20+ years ago (between 1983 & 1986) that said that a toaster (yes, a toaster) given to an account holder was not a PT. But, that's all I've ever heard of.
J Simmons Posted March 26, 2009 Posted March 26, 2009 The only thing wrong with Sieve's memory is how long ago that PTE was--16 years. Prohibited Transaction Class Exemption 93-1, January 11, 1993 (58 FR 3567). John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
Guest Sieve Posted March 26, 2009 Posted March 26, 2009 I guess time flies when you're having ERISA fun (or is that an oxymoron?)!! Are we there yet?
Kevin C Posted March 26, 2009 Posted March 26, 2009 There was something similar that came up late last year. But, it was for amounts less than $250. If you are an ASPPA member, look for ASAP No. 08-41 from 11/21/2008. If not, open the link and scroll down to item 12. The ASAP refers to this as a recent change, but does not give a date. http://www.dol.gov/ebsa/oemanual/cha48.html
Guest Pennysaver Posted March 30, 2009 Posted March 30, 2009 Thanks to all who responded, and especially to Kevin C. That was precisely what I needed.
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