Erisa Section 406

The proposed exemption provided relief only from the restrictions of section 406 b.

Erisa section 406. Section 406 a of the employee retirement income security act of 1974 erisa broadly prohibits plan fiduciaries from causing a plan to enter into either a direct or an indirect transaction involving the plan or its assets that have the potential for conflicts of interest. This penalty applies to welfare and non qualified plans and complements the excise tax imposed on tax qualified pension. Pte 79 1 provides an exemption from both section 406 a and 406 b of erisa.

Section 406 b 3 of erisa prohibits a fiduciary from receiving a fee or other consideration for his or her own personal account from a party dealing with a plan in connection with a transaction involving the assets of the plan. Section 406 of erisa prohibits certain transactions between employee benefit plans and parties in interest as defined in section 3 14 of erisa. 93 406 title i 406 sept.

The employee retirement income security act of 1974 erisa is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans. 1 section 402 b of the pension protection act of 2006 public law 109 280 dealing with certain frozen plans of commercial passenger airlines and airline caterers. Sets minimum standards.

2 section 306 of erisa and section 433 of the code dealing with certain defined benefit pension plans maintained by certain cooperatives and charities. A transfer of real or personal property by a party in interest to a plan shall be treated as a sale or exchange if the property is subject to a mortgage or similar lien which the plan assumes or if it is subject to a mortgage or similar lien which a party in interest placed on the property within the 10 year period ending on the date of the transfer. 1 which would result in a prohibited transaction described in erisa section 406 or section 4975 of the internal revenue code and 2 which would generate income that would be taxable to the plan.

1 a fiduciary with respect to a plan shall not cause the plan to engage in a transaction if he knows or should know that such transaction constitutes a direct or indirect a sale or exchange or leasing of any property between the plan and a party in interest.