IRCCourt RulingsJan 27, 1998★ strong match
) and (b) of section 4975.
Section 4975 was added to the Internal Revenue Code by title
II of ERISA. ERISA sec. 2003(a), 88 Stat. 971. Section 4975(a) and (b) imposes a two-tier excise tax on prohibited transactions.
The policy behind the enactment of section 4975 was to tax
disqualified persons who engage in self-deal…
IRCRegulationsDec 30, 2016
(c)(1) (1) In general. Section 4975(d)(6) exempts from the excise taxes imposed by section 4975 the provision of certain ancillary services by a bank or similar financial institution (as defined in § 54.4975-6(b)(4)(i)) supervised by the United States or a State to a plan for which it acts as a fiduciary if the conditi…
IRCCourt RulingsJun 1, 1987
… 57 Yale L. J. 167, 169 (1947).] Section 4975, as added to the Internal Revenue Code by title II of ERISA, Pub. L. 93-406, sec. 2003, 88 Stat. 829, 971, imposes two levels of excise tax on a prohibited transaction which is to be paid by any “disqualified person” who participates in the “prohibited transaction.” Section…
88 FR 76032 — Proposed Amendment to Prohibited Transaction Exemptions 75-1, 77-4, 80-83, 83-1, and 86-128 ERISAProposed Rules (FR)Proposed Nov 3, 2023
…available for fiduciaries providing investment advice within the meaning of section 3(21)(A)(ii) of ERISA or 4975(e)(3)(B) of the Code and regulations thereunder.
Prohibited Transaction Exemption 86-128, Class Exemption for Securities Transactions Involving Employee Benefit Plans and Broker-Dealers
The Department propo…
ERISACode / StatuteJan 6, 2025related by meaning
For purposes of this subchapter:
(1) (1) The terms "employee welfare benefit plan" and "welfare plan" mean any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established o…
IRCCourt RulingsMay 27, 2004★ strong match
s of stock is owned by a
person described in sec. 4975(e)(2)(A) or (E). Thus, by virtue
of its ownership by petitioner, Inland also was a disqualified person as to the second and third loans. The possibility that
Inland may be liable for excise taxes under sec. 4975(a) or (b)
as to the second and third loans is unimpor…
IRCCourt RulingsJun 4, 1984related by meaning
recognition that various provisions of ERISA were enacted in large part to replace the plan disqualification sanction with other pecuniary sanctions. In ERISA, Congress reacted to perceived abuses in the administration of employee benefit plans by establishing new and stricter standards of fiduciary responsibility, by…
T.C. Memo. 1999-80 — Edward Clasby and C. T. Garrahan Insurance Agency, Inc. v. Commissioner IRCCourt RulingsMar 16, 1999
…rrahan Agency
Petitioners argue that the Garrahan Agency is not a
disqualified person under section 4975(e)(2)(G) because 50 percent or more of its voting stock was not owned by a
disqualified person described in section 4975(e)(2)(A), (B), (C),
(D), or (E). We disagree.
A disqualified person includes any corporation 5…
IRCCourt RulingsAug 13, 1990
ed persons or that the plan is not a plan within the coverage of section 4975. See sec. 4975(e)(1) and (2) (“plan” and “disqualified person” defined). The “taxable period” extends from the date of the prohibited transaction to the earlier of (1) the date respondent mails a statutory notice determining a deficiency in s…
IRCCourt RulingsSep 30, 1991
2), sec. 4975(e)(2)(F); and any officer or director of a corporation which, among other things, has employees covered by the plan, sec. 4975(e)(2)(H). Petitioner Anton Zabolotny was a disqualified person as described in section 4975(e)(2)(A), (E), and (H). As a trustee for the plan he had discretionary authority to man…
80 FR 21928 — Definition of the Term “Fiduciary”; Conflict of Interest Rule-Retirement Investment Advice ERISAProposed Rules (FR)Proposed Apr 20, 2015★ strong match
certain transactions between a plan and a “party in interest.”
Back to Citation
6.
ERISA section 409;
see also
ERISA section 405.
Back to Citation
7. See 26 CFR 54.4975-9(c), which interprets Code section 4975(e)(3). 40 FR 50840 (Oct. 31, 1975). Under section 102 of Reorganization Plan No. 4 of 1978, the authority of…
ERISAProposed Rules (FR)Proposed Oct 22, 2010★ strong match
…pplication Under Code Section 4975 Code section 4975(e)(3) contains a provision that is parallel to ERISA section 3(21)(A)(ii) and defines the term “fiduciary” for purposes of the prohibited transaction excise tax provisions in Code section 4975. In 1975, the Department of the Treasury issued a regulation under Code se…
IRCCourt RulingsSep 25, 2000★ strong match
…s such but to disqualified persons and applies whether
or not a fiduciary breached his duties under ERISA section
404(a). See Westoak Realty and Inv. Co., Inc. v. Commissioner
,
999 F.2d 308, 311 (8th Cir. 1993), affg. T.C. Memo. 1992-171;
Leib v. Commissioner
, 88 T.C. 1474, 1481 (1987). We do not find,
therefore, tha…
80 FR 72006 — Savings Arrangements Established by States for Non-Governmental Employees ERISAProposed Rules (FR)Proposed Nov 18, 2015related by meaning
se in ERISA), which are primarily enforced through imposition of excise taxes against IRA fiduciaries by the Internal Revenue Service. 26 U.S.C. 4975. In other contexts, the Department has provided guidance to help employers determine whether their involvement in voluntary payroll deduction arrangements for sending emp…
85 FR 40834 — Improving Investment Advice for Workers & Retirees ERISAProposed Rules (FR)Proposed Jul 7, 2020related by meaning
…al and a Retirement Investor and it does not believe the exemption would do so.[59] As noted above, ERISA section 502(a) provides a cause of action for fiduciary breaches and prohibited transactions with respect to ERISA-covered Plans (but not IRAs). Code section 4975 imposes a tax on disqualified persons participating…
89 FR 5624 — Automatic Portability Transaction Regulations ERISAProposed Rules (FR)Proposed Jan 29, 2024
to read as follows:
( printed page 5668)
§ 2550.4975f-12
Rules relating to automatic portability transactions.
(a)
In general and scope of exemption. (1) Internal Revenue Code (Code) section 4975(d)(25) exempts from the excise taxes imposed by Code section 4975(a) and (b), by reason of Code sections 4975(c)(1)(D) and …
ERISACode / StatuteJan 8, 2008related by meaning
(b) (b) Omitted.
IRCCourt RulingsJun 16, 1987★ strong match
…vide that an otherwise prohibited transaction is not prohibited if it benefits the plan. In section 4975(d), however, Congress did provide for the exemption of certain transactions from the broad reach of section 4975(c). For instance, although section 4975(c)(1)(B) provides that the lending of money or other extension…
ERISACode / StatuteJan 5, 2015related by meaning
§§1085b, 1086. Repealed. Pub. L. 109–280, title I, §101(a), Aug. 17, 2006, 120 Stat. 784
IRCPrivate Letter RulingsMar 2, 2001
…E 1. For purposes of determining whether a plan is an “employee stock
ownership plan” as defined in ERISA §407(d)(6), and exempt from the prohibited
transaction provisions of I.R.C. §4975(c )(1)(A) pursuant to I.R.C. §4975(d)(13), is
the term “qualifying employer securities” defined by I.R.C. §409(l) or by §407(d)(5)
o…