---
kind: "section"
citation: "29 U.S.C. § 1106"
title: "29"
title_heading: "Labor"
number: "1106"
heading: "Prohibited transactions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/29/1106"
units:
  - "Chapter 18 — Employee Retirement Income Security Program"
  - "Subchapter I — Protection of Employee Benefit Rights"
  - "Subtitle B — Regulatory Provisions"
  - "Part 4 — fiduciary responsibility"
---

# §1106. Prohibited transactions

- (a) **Transactions between plan and party in interest—** Except as provided in [section 1108 of this title](/usc/29/1108.md):
  - (1) A fiduciary with respect to a plan shall not cause the plan to engage in a transaction, if he knows or should know that such transaction constitutes a direct or indirect—
    - (A) sale or exchange, or leasing, of any property between the plan and a party in interest;
    - (B) lending of money or other extension of credit between the plan and a party in interest;
    - (C) furnishing of goods, services, or facilities between the plan and a party in interest;
    - (D) transfer to, or use by or for the benefit of a party in interest, of any assets of the plan; or
    - (E) acquisition, on behalf of the plan, of any employer security or employer real property in violation of [section 1107(a) of this title](/usc/29/1107.md?p=a).
  - (2) No fiduciary who has authority or discretion to control or manage the assets of a plan shall permit the plan to hold any employer security or employer real property if he knows or should know that holding such security or real property violates [section 1107(a) of this title](/usc/29/1107.md?p=a).
- (b) **Transactions between plan and fiduciary—** A fiduciary with respect to a plan shall not—
  - (1) deal with the assets of the plan in his own interest or for his own account,
  - (2) in his [individual](/usc/29/1301.md?p=a-14-C-ii-V) or in any other capacity act in any transaction involving the plan on behalf of a party (or represent a party) whose interests are adverse to the interests of the plan or the interests of its participants or beneficiaries, or
  - (3) receive any consideration for his own personal account from any party dealing with such plan in connection with a transaction involving the assets of the plan.
- (c) **Transfer of real or personal property to plan by party in interest—** A transfer of real or personal property by a party in interest to a plan shall be treated as a sale or exchange if the property is subject to a mortgage or similar lien which the plan assumes or if it is subject to a mortgage or similar lien which a party-in-interest placed on the property within the 10-year period ending on the date of the transfer.

## Source credit

(Pub. L. 93–406, title I, § 406, Sept. 2, 1974, 88 Stat. 879.)