Be sure that the plans you audit are not engaging in prohibited transactions, resulting in a need to unwind the transaction and restore the plan to the financial status that would have existed if the transaction had not occurred. There are many things that may not appear to be prohibited but are. For instance, renting property owned in a corporation owned by a family member of an individual who sits on the Board of Directors of the employer sponsoring the plan. Similarly, the plan co-investing with the son of a 10% shareholder of the employer sponsoring the plan. Learn to both identify and correct prohibited transactions at the lowest tax cost.
Evaluate the nuances of the rules for prohibited transactions, including the differences between the IRS and the DOL rules
Assess the questions to ask your client so that all possible prohibited transactions are uncovered, hoping before being entered into.
Apply client facts to the rules to determine if a prohibited transaction exists and the best way to correct the transactions
National Director, Compensation and Benefits,
Cherry Bekaert LLP