In-Kind Contributions to Pension Plans (Posted May 8, 2004) Technical Tip 120: The following question and answer were from the IRS Q&A Session at the 2002 ASPPA Annual Conference: Are there any exceptions to the rule that employers may not make in-kind contributions to fulfill 412 funding obligations under a defined benefit plan? Specifically, is there an exemption for one-participant plans? Response: There is no exemption to the prohibited transaction rule. View all Tips © 2012 Reish Luftman Reicher & Cohen, a Professional Corporation Important notice: Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner's situation. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of your situation.