ERISA Advisory Opinion 2000-10A (July 27, 2000) [http://www.dol.gov/ebsa/regs/AOs/ao2000-10a.html] was about whether an IRA's investment in a partnership managed by Madoff might be a prohibited transaction.
One wonders whether the investor went through with it?
Full Version: Madoff investment as a prohibited transaction?
My guess would be that he did - my sense is that as a current investor, he was happy with the overall return. Why else would he have bothered to apply for an advisory opinion from the DOL on the PT issue?
QUOTE (Fiduciary Guidance Counsel @ Jan 7 2009, 08:55 AM) 
ERISA Advisory Opinion 2000-10A (July 27, 2000) [http://www.dol.gov/ebsa/regs/AOs/ao2000-10a.html] was about whether an IRA's investment in a partnership managed by Madoff might be a prohibited transaction.
One wonders whether the investor went through with it?
One wonders whether the investor went through with it?
why wouldnt he have done it since he was getting a 12% return with no risk?
Sometimes a lawyer suggests that a client seek an ERISA Advisory Opinion because doing so is cheaper than buying a lawyer's opinion, especially if the circumstances involve a significant risk exposure for the lawyer.
In AO 2000-10A, the Department did not issue the requested opinion, and also mentioned some of the ways that the IRA's investment might be a prohibited transaction.
In AO 2000-10A, the Department did not issue the requested opinion, and also mentioned some of the ways that the IRA's investment might be a prohibited transaction.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.