Guest lthorne11 Posted May 12, 2011 Posted May 12, 2011 I have a profit sharing plan in which the only participant is the owner of the business. He wants to buy his in-laws house with plan assets (they are moving to a retirement home), remodel and sell the house, so basically flip the house. Is this permitted? Does it make a difference if he wants to demolish the house and build a new house to either rent or sell? Thanks.
QDROphile Posted May 12, 2011 Posted May 12, 2011 Just for starters, at best you will have facts and circumstances sensitivity under section 4975©(1)(E) or (F).
masteff Posted May 12, 2011 Posted May 12, 2011 I'm pretty sure that in-laws are disqualified persons making it a prohibited transaction. Aside from that real estate in a plan gets messy fast. Searching on "real estate" finds a number of prior threads. These are just a few: http://benefitslink.com/boards/index.php?showtopic=46911 http://benefitslink.com/boards/index.php?showtopic=46177 http://benefitslink.com/boards/index.php?showtopic=42640 http://benefitslink.com/boards/index.php?showtopic=44251 Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra
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