A disqualified person or entity is prohibited from doing business with the plan depending on their relationship with the plan owner. The following are a few examples of disqualified persons, including the plan owner:
- A fiduciary of the plan (includes the owner)
- Certain family members of the plan’s owner (owner’s spouse, lineal ascendants and descendants, and spouse of any lineal descendant)
- Any employer of employees who are covered by the plan
- Any employee organization where members are covered by the plan
- Anyone who provides services to the plan
- Any corporation, partnership, trust, or estate in which disqualified persons have a 50 percent or greater interest
Note: Siblings are not on the list of disqualified persons, and this list is incomplete. Please seek the advice of a financial professional for advice regarding disqualified persons and entities.