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Posted

Pension plan with 2 owner-participants.

They want to invest plan assets in a closely held corporation that they have personally invested in. Their personal investment is about 1.2% of this corporation.

Is this a PT? If so, what party in interest definitions apply?

  • 1 month later...
Posted

This is possible... but must be done with care and must be done as a simultaneous transaction... cannot be done after the fact.... i.e. after the owner already owns the entire entity....

Recommendation: Work closely with an ERISA attorney who is knowledgeable on simultaneous transactions.

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