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Do the Code’s Prohibited Transaction Rules Apply to ESOPs?

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ESOPs are subject to the prohibited transaction rules under the Code, however, there are important exceptions for ESOPs. Watch the video to learn more.

Transcript

The prohibitive transaction rules that apply to all retirement plans contain two very important exceptions for ESOPs.  First, an ESOP is allowed to buy or sell stock from a party in interest or disqualified person, and second, an ESOP is allowed to borrow money from a disqualified person or party in interest and use that to buy stock in the plan. 

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