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February 16, 2009

Prohibited transaction class exemption (PTCE)

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Definition

An administrative exemption that would allow an otherwise disallowed person to engage in transactions that would otherwise be considered prohibited transactions. PTCEs are  granted under section 408(a) of ERISA, section 4975(c)(2) of the Code, and/or 5 U.S.C. 8477(c)(3), which applies to specific parties any parties in interest within the class of parties in interest specified in the exemption who meet the conditions of the exemption.

Referring Cite

IRC § 4975(d) , ERISA Sec. 408,  DOL Reg. §2570.31(b)

Additional Helpful Information

    • DOL Logo PWBA Office of Exemption Determinations
    • PTEs on IRA are usually issued by the IRS

Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at http://irapublications.com. Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.

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