An officer for a corporation takes out numerous unsecured loans from the company's qualified retirement plan. Which of these rules is the plan in violation of?

The plan is in violation of the exclusive benefit rule. This rule mandates that the assets of a qualified retirement plan must be used solely for the benefit of the plan participants and their beneficiaries. When an officer takes out unsecured loans from the retirement plan, it can jeopardize the plan’s ability to serve the interests of all participants, as funds that were intended for retirement savings are being diverted for personal loans. Such actions can compromise the plan’s integrity and the financial security of the employees relying on it.

In contrast, the participation rule relates to who is eligible to participate in the plan, while the funding rule pertains to how the plan’s assets are managed and secured. The employer match rule involves contributions made by the employer based on employee contributions and does not directly relate to the misuse of plan assets. Therefore, the exclusive benefit rule is the most relevant in this situation, as it underscores the importance of protecting plan assets for the intended purpose of providing retirement benefits.