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Problematic Self-Directed Retirement Activities Series - Session 3: Prohibited Transaction Chinese Walls (ACPSD309)

 
Date:Thursday, December 21, 2017
Time:1:00 PM - 2:40 PM
(Registration at 12:30PM)
Facility:Webcast or Webinar, Online
CPE Credit:2.0 Technical Business
Instructor: David R. Jenkins
Vendor:ACPEN
Course Level:Intermediate
Early Bird Price:$79.00 FICPA Members, $109.00 Non-Members

Description:

A Prohibited Transaction Chinese Wall (PTCW) is not a tax planner’s privilege but a retirement plan public policy compliance necessary condition.   Congress enables PTCW creation by and through management risk diversification policy compliance and a properly invoked plan asset rule exception.  Then and only then may Section 4975(c)(1)(A), (B), or (C) self-dealing activities be transformed into incidental benefits.

Lesson 1.

Peek and Ellis

 

Lesson 2. 

Stephenson and the Plan Asset Rule

 

Lesson 3.

Prohibited Transaction Chinese Walls

 

Lesson 4.

PTCW Investment Structures



Objectives:

  • Recognize the Peek Tax Court’s decision substantively requires correctly achieving management risk diversification policy compliance before accessing plan asset rule exception targeted benefits is enabled  

  • Recognize the Ellis Tax Court’s decision substantively requires correctly achieving management risk diversification policy compliance before accessing plan asset rule exception targeted benefits is enabled  

  • Recognize the Stephenson decision’s substantive holding means a correctly invoked plan asset rule operating company exception denies ascribing its underlying assets as plan assets and creates a Prohibited Transaction Chinese Wall (PTCW)  

  • Recognize a PTCW correctly renders specifically proscribed self-dealing activities as generally infeasible on the PTCW’s exogenous side because there are no plan assets there  

  • Recognize a PTCW correctly renders specifically proscribed self-dealing activities as generally feasible on the PTCW’s endogenous side because there are yet plan assets there  

  • Recognize plan asset rule exceptions correctly include, inter alia, the operating company exception and the de minimis interest exception  

  • Recognize whether plan entity investment correctly complies with Section 4975 impounded management risk diversification policy requirements  

  • Recognize whether management risk diversification policy compliant plan entity investment properly invokes a plan asset rule exception  

  • Recognize whether a Prohibited Transaction Wall has been correctly created between the plan’s entity investment interest and the entity’s underlying assets  

  • Recognize whether Section 4975(c)(1)(A), (B), or (C) self-dealing activities have correctly transitioned to incidental benefits  

  • Recognize when Section 704(b) transaction structures are correctly formulated they result in lower equity costs of capital while comporting with Congress’s retirement plan and going concern productivity policy objectives  

  • Recognize when PTCW transaction structures are correctly formulated they result in transitioning proscribed self-dealing activities into incidental benefits



    Major Topics:

  • The Peek decision’s implications for management risk diversification policy compliance  

  • The Ellis decision’s implications for management risk diversification policy compliance  

  • The Stephenson decision’s implications for transitioning proscribed self-dealing activities into incidental benefits  

  • Properly creating Prohibited Transaction Chinese Walls through management risk diversification policy compliance and properly invoking a plan asset rule exception  

  • Direct versus indirect plan asset rule exception requirements



    Who Should Attend:
    CPAs, Attorneys, , Enrolled Agents, Other Tax Professionals

    Prerequisite:
    Complete the following webcasts- 1) Retirement Plan Management and Investment Risk Diversification Standards, and 2) Management and Investment Risk Diversification Indices.

    Advanced Preparation:
    Purchase and read the academic journal article underpinning this course. Article

    Session/Options

    If listed below, select the appropriate sessions or options to continue with your purchase.

    Registration Status: CLOSED - Online registration for this course is now closed. Please contact the Member Service Center at (800) 342-3197 if you wish to inquire about registering.