Section 406 Erisa

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.

Section 406 erisa. C imposes reasonable restrictions on frequency of investment instructions. Section 502 l of the employee retirement income security act erisa 29 u s c. 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.

Amendment by section 7894 e 2 of pub. Section 406 a 1 e of erisa prohibits a fiduciary with respect to a plan from causing the plan to engage in a transaction if he or she knows or should know that such transaction constitutes a direct or indirect acquisition on behalf of the plan of any employer security or employer real property in violation of section 407 a. 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.

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 a fiduciary with respect to a plan shall not cause the plan to engage in a transaction if he knows. 101 239 effective except as otherwise provided as if originally included in the provision of the employee retirement income security act of 1974 pub.

Prohibited transactions a transactions between plan and party in interest except as provided in section 1108 of this title. 101 239 set out as a note under section 1002 of this title. 93 406 to which such amendment relates see section 7894 i of pub.

Section 406 b 3 of erisa provides that a plan fiduciary shall not receive any consideration for his or her own personal account from any party dealing with the plan in connection with a transaction involving assets of the plan.