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The plan is not defined benefit or defined contribution. It is administered by me being the (A) Fiduciary. I have had the plan for 35 years.
I have forgotten the specific classification.
My thought is that under paragraph 6, this is a prohibited transaction, but I am looking for support. I am 98% sure.
I need to under stand what the relationship between the Corp, your son, and the plan. What is meant by on behalf of a PSP
I would be creating a LLC for the purpose of property management. My sons already own a real estate company as a proprietership.
It is curious that the letter F( member of the family ) was left out
See IRC 4975(e)(2)(G) first:
(2) Disqualified person
(G) a corporation, partnership, or trust or estate of which (or in which) 50 percent or more of-
(i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation,
(ii) the capital interest or profits interest of such partnership, or
(iii) the beneficial interest of such trust or estate,
is owned directly or indirectly, or held by persons described in subparagraph (A), (B), (C), (D), or (E);
Now, look to IRC 4975(e)(2)(E), bolding mine:
(E) an owner, direct or indirect, of 50 percent or more of-
(i) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation,
(ii) the capital interest or the profits interest of a partnership, or
(iii) the beneficial interest of a trust or unincorporated enterprise,
which is an employer or an employee organization described in subparagraph (C) or (D);