There are tax consequences for committing a prohibitive transaction between a retirement plan and a disqualified persons or party; however, there are exemptions under the Prohibited Transactions Rules. Which is not an exception?

Question

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The Prohibited Transactions Rules set out what transactions are prohibited between a retirement plan and a disqualified persons or party with several exemptions such as receipts of benefits under terms of the plan, providing office space or services for the pan for "reasonable' compensation, and loans made to an ESOP. Additional exemptions include: distribution of plan assets according to allocation provisions, loans available to plan participants and beneficiaries, and purchase or sale of qualifying employer securities by an individual account, profit sharing, stock bonus, thrift or savings plan, or ESOP, for adequate consideration and without commission.

There Are Tax Consequences for Committing a Prohibitive Transaction Between