Prohibited Transactions and Parties-in-Interest
- Prohibited transaction rules serve to prevent interested parties from using plan assets for their own benefit.
- Parties-in-interest include the plan sponsor, fiduciaries, service providers, corporate officers and others.
- Fiduciaries are not permitted to have conflicts or to benefit themselves or anyone else other than plan participants and their beneficiaries absent a prohibited transaction exemption.
- Prohibited transaction exemptions allow parties-in-interest to receive reasonable compensation for acceptable services.
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