Prohibited transaction class exemption (PTCE)

Definition

An administrative exemption that would allow an otherwise disallowed person to engage in transactions that would otherwise be considered prohibited transactions. PTCEs are  granted under section 408(a) of ERISA, section 4975(c)(2) of the Code, and/or 5 U.S.C. 8477(c)(3), which applies to specific parties any parties in interest within the class of parties in interest specified in the exemption who meet the conditions of the exemption.

Referring Cite

IRC § 4975(d) , ERISA Sec. 408,  DOL Reg. §2570.31(b)

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