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. Which of the following are prohibited transactions? a. Melvin is a co-trustee

ID: 2697437 • Letter: #

Question

. Which of the following are prohibited transactions?

a. Melvin is a co-trustee of Super K Profit Sharing Plan. He borrowed some securities from the profit sharing plan for 4 days as collateral on a complicated brokerage transaction. He notified the other co-trustee of his intended action before borrowing the securities and had returned the securities on the fourth day, by 10:00 a.m.

b. Bob, a covered participant of the profit sharing plan, borrows $5,000 from his account balance to pay for his first semester in graduate school.

c. Lacy is age 20 and has worked for the company for 8 months. The company

Explanation / Answer

b. Bob, a covered participant of the profit sharing plan, borrows $5,000 from his account balance to pay for his first semester in graduate school.