U.S. Code » Title 29 » Chapter CHAPTER 18— EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM › Subchapter SUBCHAPTER I— PROTECTION OF EMPLOYEE BENEFIT RIGHTS › Subtitle Subtitle B— Regulatory Provisions › Part part 4— fiduciary responsibility

29 U.S.C. § 1106

Prohibited transactions

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(a) Transactions between plan and party in interestExcept as provided in section 1108 of this title:(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.(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.(b) Transactions between plan and fiduciaryA 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 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.

(Pub. L. 93–406, title I, § 406, Sept. 2, 1974, 88 Stat. 879.)
Notes of Decisions
Cited in 940 cases (201 in the last 5 years), 1976–2026 · leading case: Jennifer Sweda v. Univ. of Pennsylvania, 923 F.3d 320 (3rd Cir. 2019).
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Jennifer Sweda v. Univ. of Pennsylvania, 923 F.3d 320 (3rd Cir. 2019). · cites it 10× “§ 1104 (a)(1) (Counts I, III, and V) and prohibited transactions in violation of 29 U.S.C. § 1106 (a)(1) (Counts II, IV, and VI).”
Teets v. Great-West Life & Annuity Ins. Co., 921 F.3d 1200 (10th Cir. 2019). · cites it 14× “” 29 U.S.C. § 1106 (b)(1). Second, ERISA restricts transactions between fiduciaries and non-fiduciary third parties, referred to as 4 Courts occasionally also use the term “plan fiduciaries” to distinguish plan- affiliated fiduciaries (typically named fiduciaries) from…”
Nat'l Sec. Sys., Inc. v. Iola, 700 F.3d 65 (3rd Cir. 2012). · cites it 13× “29 U.S.C. § 1106 (b)(3). The District Court found that Tri-Core promoted Commonwealth’s policies as investment vehicles for the plans knowing that it would draw a handsome salary from Commonwealth on each C-group policy it sold.”
Braden v. Wal-Mart Stores, Inc., 588 F.3d 585 (8th Cir. 2009). · cites it 6× “Count V alleges that the revenue sharing payments were “prohibited transactions” under 29 U.S.C. § 1106 (a)(1). Finally, Counts II and IV allege, respectively, that those appellees with oversight responsibility failed adequately to monitor those who managed the Plan and that…”
Spires v. Schs., 271 F. Supp. 3d 795 (D.S.C. 2017). · cites it 31× “In count three, Plaintiffs allege co-fiduciary liability under 29 U.S.C.”
Cunningham v. Cornell Univ., 86 F.4th 961 (2d Cir. 2023). · cites it 11× “On appeal, plaintiffs challenge: (1) the dismissal of their claim that Cornell entered into a “prohibited transaction,” pursuant to 29 U.S.C. § 1106 (a)(1)(C), by paying the plans’ recordkeepers unreasonable compensation, (2) the “parsing” of a single count alleging a breach of…”
The Depot, Inc. v. Caring for Montanans, Inc., 915 F.3d 643 (9th Cir. 2019). · cites it 5× “10 Although we have adopted a “functional definition of what constitutes an ‘asset of the plan’ for purposes of [ 29 U.S.C. § 1106 ],” Kayes v. Pac. Lumber Co.”
Vellali v. Yale Univ., 308 F. Supp. 3d 673 (D. Conn. 2018). · cites it 11× “" Under the relevant portions of 29 U.S.C. § 1106 (a), Except as provided in section 1108 of this title: (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-…”
Brotherston v. Putnam Investments, 907 F.3d 17 (1st Cir. 2018). · cites it 6× “29 U.S.C. § 1106 (a)(1)(C). The second prohibition appears in section 1106(b), which provides: A fiduciary with respect to a plan shall not-- .”
Allen v. Greatbanc Trust Co., 835 F.3d 670 (7th Cir. 2016). · cites it 4× “§ 1132 , raising two theories of recovery: first, that GreatBanc engaged in transactions that section 406 of ERISA prohibits, see 29 U.S.C. § 1106 ; and second, that GreatBanc breached its fiduciary duty under ERISA section 404, 29 U.”
Harris Trust & Sav. Bank v. Salomon Smith Barney Inc., 530 U.S. 238 (2000). · cites it 6× “” 29 U. S. C. § 1106 (a). Section 502(a)(3) authorizes a “participant, beneficiary, or fiduciary” of a plan to bring a civil aetion to obtain “appropriate equitable relief” to redress violations of ERISA Title I.”
Haley v. Teachers Ins. & Annuity Ass'n of Am., 377 F. Supp. 3d 250 (S.D. Ill. 2019). · cites it 8× “PAUL OETKEN, United States District Judge Plaintiff Melissa Haley brings this putative class action against Defendant Teachers Insurance and Annuity Association of America ("TIAA"), alleging that TIAA engaged in prohibited transactions with the Washington University Retirement…”
Show all 940 citing cases →
— 29 U.S.C. § 1106(a)(1)(A) — 1 case
Walsh v. Reliance Trust Co. (D. Minnesota 2020).
— 29 U.S.C. § 1106(a)(1)(D) — 2 cases
Reich v. Walter W. King Plumbing & Heating Contractor, Inc., 98 F.3d 147 (4th Cir. 1996).
Rodriguez v. Intuit Inc. (N.D. Cal. 2024).
— 29 U.S.C. § 1106(b)(1) — 2 cases
Bd. of Trs. of the Aftra Ret. Fund v. JPMorgan Chase Bank, N.A., 806 F. Supp. 2d 662 (S.D.N.Y. 2011).
Hutchins v. HP Inc. (N.D. Cal. 2025).
— 29 U.S.C. § 1106(b)(l) — 1 case
Bd. of Trs. of the Aftra Ret. Fund v. JPMorgan Chase Bank, N.A., 806 F. Supp. 2d 662 (S.D.N.Y. 2011).
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