Guest DBadmin101 Posted November 9, 2011 Posted November 9, 2011 DB Plan Sponsor (medical practice - 10 participants) wants to invest a portion of the plan assets in Real Estate Development group. Although not a controlled group he is 40% shareholder. PT or not?
QDROphile Posted November 9, 2011 Posted November 9, 2011 You have given us enough information only to provide a standby answer: Physician investment idea=prohibited transaction.
mbozek Posted November 9, 2011 Posted November 9, 2011 This is one of this situations where you will need to get an opinion letter from the DOL which has jurisdiction over PTs. Of course this will be expensive and the answer may be less than satisfactory. mjb
Guest DBadmin101 Posted November 9, 2011 Posted November 9, 2011 Thank You Q and M. Sorry for previous lack of details. Physician holds 40% share of the Real Estate development company (REC). No controlled group exists between Medical practice and REC. The REC needs to borrow $1,000,000 from bank. The Dr. figured that instead of borrowing from bank at x% rate, his plan could "lend" the capital.
QDROphile Posted November 9, 2011 Posted November 9, 2011 How nice for the good doctor's personal interest. Absolutely prohibited and the only way is an individual exemption.
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