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Section 4975(e)(2)(G) Management and Investment Risk Diversification Standards  


Author:  David Randall Jenkins.


Source: Volume 32, Number 04, Summer 2015 , pp.59-77(19)




Journal of Taxation of Investments

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Abstract: 

While the Tax Court’s 2004 Rollins decision found commonalities in Section 4941(d) private foundation and Section 4975(c) retirement plan self-dealing activity, the court failed to reconcile important public policy differences in the two sections’ disqualified person criteria. This article demonstrates Section 4946(a) (1)(C)’s more-than-20-percent and Section 4975(e)(2)(G)’s 750-percent-or-more disqualified person criteria manifest management and investment risk diversification symmetric matrices. The matrices enable important public policy private foundation and retirement plan fiduciary management and investment risk diversification general rule standards. However, whenever there are general rules, exceptions are sure to follow.

Keywords: ERISA, risk diversification standards, prohibited transactions, self-dealing activities, public policy

Affiliations:  1: Algorithm LLC.

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