According to ERISA, which of the following transactions between an employee benefit plan and a party-in-interest is permitted?

The correct answer relates to the specific provisions of the Employee Retirement Income Security Act (ERISA) concerning transactions between an employee benefit plan and parties-in-interest. Under ERISA, transactions with parties-in-interest must comply with certain rules to protect the interests of plan participants and beneficiaries.

Loans to plan participants can be permissible under ERISA, provided they adhere to specific restrictions. These restrictions typically include ensuring that the loans are repaid within a specified time frame and that the loan terms are consistent with those that would be offered in an arm's-length transaction. This means the loans must be made under standard market terms and conditions, allowing employees to access funds while safeguarding the integrity of the plan.

While the other options involve transactions that are generally prohibited under ERISA—such as leasing or selling plan property to a party-in-interest and extensions of credit from a party-in-interest to the plan—loans made directly to participants are explicitly allowed with adequate safeguards in place. This ensures that participants have access to necessary resources, thereby enhancing the plan's functionality and benefit to its members.