Section 4975

Tax on prohibited transactions.

Section 4975. D an employee organization any of whose members are covered by the plan. 555 12th street suite 900 oakland ca 94607. 1108 b and section 4975 d of the internal revenue code of 1986 provided by the amendments made by this section amending this section and section 1108 of title 29 labor shall not in any manner alter existing individual or class exemptions provided by statute or administrative action.

E an owner direct or indirect of 50 percent or more of. Code unannotated title 26. C an employer any of whose employees are covered by the plan.

An individual retirement account is established and his beneficiaries shall be exempt from the tax imposed by this section with respect to any transaction concerning such account which would otherwise be taxable under. Pending final regulations being issued under irc 4975 calculate the excise tax on pts the same way as the excise tax on self dealing transactions for private foundations. B a person providing services to the plan.

Specifically irc section 4975 stipulates that an ira owner and anyone else responsible for the ira account is prohibited from commingling the financial interests of the ira itself with its owner or any other related parties all of whom are deemed to be disqualified persons. For purposes of this section the term plan means a a trust described in section 401 a which forms a part of a plan or a plan described in section 403 a which trust or plan is exempt from tax under section 501 a. The definition of a disqualified person internal revenue code section 4975 e 2 extends into a variety of related party scenarios but generally includes the ira holder any ancestors or lineal descendants of the ira holder and entities in which the ira holder holds a controlling equity or management interest.

Any exemption under section 408 b of the employee retirement income security act of 1974 29 u s c. Section 4975 f 4 defines the term amount involved generally as the greater of 1 the amount of money and the fair market value of the other property given or 2 the amount of money and the fair market value of the other property received in such transaction. Internal revenue code 4975.

Internal revenue code section 4975 e 2 e tax on prohibited transactions e definitions. Disqualified person 2 disqualified person for purposes of this section the term disqualified person means a person who is a a fiduciary. Irc 4975 a and b impose a two level nondeductible excise tax on each pt a dp enters into other than a fiduciary acting only as a fiduciary.