Prohibited Transaction Issue?

Can the spouse of a 1/3 owner of a company service as the broker for a 401k plan?

Buckoosier, the spouse would probably (would need more facts to know for sure) not be a disqualified person, but if the1/3rd owner has any role in the decision to hire the spouse (and seems difficult to imagine would not), it could be a prohibited transaction under the conflict of interest provisions. Whether would not be a PT, and whether in any event makes sense, would require a very sensitive analysis of facts and circumstances.