Expert: Allen - 2/26/2008

Question
I've got a property in Minn.  My Pension plan bought 3/4 of it, but there wasn't enough to purchase entire lot.  I personally purchased the other 1/4 of the lot.  Now that my pension has more $, can I sell my portion of the lot to the pension plan.  The land has gained no value, so no profit would be made.  Can you tell me where to find the tax code?

Thanks

Answer
Unfortunately the sale of property by you to the pension plan is what is known as a party in interest transaction and a prohibited transaction even if the transaction is structured to be reasonable.

You can file for an exemption from the Dept. of Labor. However this  would require hiring a lawyer.

The relevant section of the Internal Revenue Code is 4975. There is also a section in ERISA.