Problematic Self-Directed Retirement Activities Series - Session 4: Problematic Self-Directed Retirement Plan Activities

In the first lecture of this four-lecture retirement plan tax law series, Retirement Plan Management and Investment Risk Diversification Standards, we learned the retirement plan (self-dealing activity, incidental benefit) bright line was quantified and defined by public policy’s management and investment risk diversification standards. Such retirement plan risk diversification policy compliance results in transforming generally proscribed Sections 4975(c)(1)(D), (E), or (F) prohibited transaction self-dealing activities into incidental benefits. In the third lecture of this four-lecture retirement plan tax law series, Prohibited Transaction Chinese Walls, we learned eviscerating the self-dealing activity nexus plan asset element by and through properly invoking plan asset rule exceptions enables transforming specifically proscribed Sections 4975(c)(1)(A), (B), or (C) prohibited transaction self-dealing activities into incidental benefits. This lecture applies those retirement plan tax law fundamental concepts in teaching problematic self-directed retirement plan activities. Problematic activities currently pervasive across the nation generally include retirement plan management and investment risk diversification policy noncompliance, the lack of properly using Prohibited Transaction Chinese Walls, and specifically include the use of disqualified person entity Checkbook LLCs, self-directed retirement plan indirect operating company investments, unremunerated account holder non-administrative services, and unreported real estate dealer activity Section 512 unrelated business taxable income.

**Please Note:  If you need credit reported to the IRS for this IRS approved program, please download the IRS CE request form on the Course Materials Tab and submit to leighanne.conroy@acpen.com.

Basic Course Information

*Confirming retirement plan management and investment risk diversification general rule standards understanding

*Confirming understanding understanding how plan asset rule exceptions form unilateral exceptions to the risk diversification general rules

*Confirming understanding Prohibited Transaction Chinese Walls are a  specifically proscribed (self-dealing activity: incidental benefit) transition policy compliance necessary condition

*Understanding direct operating company investment minimum management risk diversification requirements

*Understanding balancing plan asset rule exceptions against complying with the Section 4975(e)(2)(G) disqualified person criterion complements in indirect operating company investment structures

*Understanding dual Prohibited Transaction Chinese Wall indirect operating company investment structures

*Understanding unremunerated non-administrative account holder service compensation is a prohibited transaction that may be reformed only with a properly created Prohibited Transaction Chinese Wall

*Understanding retirement plan management and investment risk diversification noncompliance will result in eviscerating separate entity distinctions in systemic real estate activities, resulting in dealer status determinations on a system-wide basis and unreported Section 512 income

*Retirement plan management and investment risk diversification general rules

*Plan asset rule exceptions are retirement plan risk diversification unilateral exceptions to general rule requirements

*Prohibited Transaction Chinese Walls are a specifically proscribed (self-dealing activity: incidental benefit) transition policy compliance necessary condition

*Direct operating company investment minimum management risk diversification requirements

*Balancing plan asset rule exceptions against complying with Section 4975(e)(2)(G) disqualified person criterion complements in indirect operating company investment structures

*Dual Prohibited Transaction Chinese Wall indirect operating company investment structures

*Reforming unremunerated non-administrative account holder services compensation prohibited transactions

*Account holder system-wide real estate dealer status and unreported Section 512 income