Discussion:Loan from profit sharing plan
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| Revision as of 20:18, 28 January 2008 Kevinh5 (Talk | contribs) (does the plan ev) ← Previous diff |
Revision as of 20:45, 28 January 2008 RJM (Talk | contribs) (Think this might) Next diff → |
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| {{ForumReplyPost|UserID=Kevinh5|Date=28 January 2008|Text=does the plan even allow this? Seems after ENRON that this type of dirty dealing wouldn't be allowed.}} | {{ForumReplyPost|UserID=Kevinh5|Date=28 January 2008|Text=does the plan even allow this? Seems after ENRON that this type of dirty dealing wouldn't be allowed.}} | ||
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| + | {{ForumReplyPost|UserID=RJM|Date=28 January 2008|Text=Think this might be a "prohibited transaction" as a form of self-dealing. There is a lot of DOL and IRS clamp-down on these types of arrangements the last few years. There are a number of so-called professional firms who are in the business of setting up these transactions. If discovered on audit the consequences to the participant/owners are enormous !}} | ||
Revision as of 20:45, 28 January 2008
Discussion Forum Index --> Advanced Tax Questions --> Loan from profit sharing plan
Discussion Forum Index --> Tax Questions --> Loan from profit sharing plan
| 28 January 2008 | |
| I have a client who is a c corp with a profit sharing plan. The only employees of the corp and persons in the profit sharing plan are family memebers. The client wants to loan 100% of the profit sharing assets to the c corp. Interest will be charged on the loan, all of the proper loan documents will be signed. The loan will be secured by real estate. I don't think this is a good idea. Any other thoughts pro or con? | |
| 28 January 2008 | |
| does the plan even allow this? Seems after ENRON that this type of dirty dealing wouldn't be allowed. | |
| 28 January 2008 | |
| Think this might be a "prohibited transaction" as a form of self-dealing. There is a lot of DOL and IRS clamp-down on these types of arrangements the last few years. There are a number of so-called professional firms who are in the business of setting up these transactions. If discovered on audit the consequences to the participant/owners are enormous ! | |
