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Focus 10: Prohibited Transactions: Who, What, Why & Why Not? '14
Presentor: Stephen Forbes Recorded Date: 6/5/2014 Duration: 60 Min.


This program was recorded during a live presentation on June 5, 2014 at 2:00PM EDT.

All sessions will be recorded and available for purchase. Due to the inability to track attendance, however, a Letter of Participation is not provided for recorded events.


Focused Topic 10: Prohibited Transactions: Who, What, Why & Why Not?
Mondays with Derrin and Steve

Practitioners get an uneasy feeling when a plan sponsor calls with questions about investing in an investment that doesn’t follow the traditional investment patterns – stocks, bonds and mutual funds. Generally, the concerns center on whether such an investment will constitute a prohibited transaction.

A practitioner has good reason to be concerned. The IRS and DOL are focusing more attention on prohibited transactions. In fact, the DOL recently started two pilot projects regarding prohibited transactions that may be elevated to national enforcement projects. The new service provider fee disclosure requirements are based in the prohibited transactions regulations.

With the advent of electronic filing of the Form 5500, the government has a greater ability to identify potential prohibited transactions. Accordingly, practitioners need to have a fundamental knowledge of the prohibited transaction requirements. In this web seminar, the speaker explains the structure, sanctions, purpose and exemptions.

Topics include:

  • Disqualified person/ Party-in-interest
  • What transactions are prohibited?
  • Direct and indirect
  • Self-dealing
  • Sale or exchange
  • Loans
  • Exemptions
  • Discrete prohibited transactions
  • Service provider fee disclosures
  • Calculation of the excise tax
  • Qualifying employer securities
Prerequisites: There are no prerequisites and no advance preparation required for this program. However, the instructor assumes participants have a basic familiarity with 401(k) plans, including classic safe harbor plans.

Level: Intermediate

Instructional Delivery Method
Group – Internet-Based

Speaker – Stephen W. Forbes, J.D., LL.M.
Author of The 5500 Filing Guide

Objectives: After the seminar, attendees should be able to:

  1. Identify a disqualified person and a party-in-interest
  2. Explain the tax consequences of engaging in a prohibited transaction
  3. Identify which types of transactions that are prohibited
  4. Identify exemptions to the prohibited transaction requirements
  5. Explain the breadth of the prohibited transactions requirements to a plan sponsor
  6. Determine whether the service provider fee disclosures violate the prohibited transaction requirements
  7. Explain self-dealing to a sponsor
  8. Explain the limitations on the exemptions
  9. Report properly a prohibited transaction

How To Participate
You will need a phone (speakerphone, for multiple participants sharing the Primary registrant’s authorized connection) and Internet Access. The graphics presentation and illustrations will be viewed via the Primary registrant’s Web connection, while the speaker audio portion will be via the Primary registrant’s telephone.

Select the "Fees" link on the right side menu of this page for more information about who is authorized to connect to the program, and for the cancellation/transfer policy.

Program Schedule (Eastern Time) New date!
Tuesday, June 3, 2014
12:00 noon to 1:00 p.m. Eastern Time
(11:00 a.m. CT; 10:00 a.m. MT; 9:00 a.m. PT)

Program related requests, questions, or concerns may be e-mailed to: