Discretionary Transaction Law and Legal Definition

A Discretionary Transaction shall mean a transaction pursuant to an employee benefit plan that:

a. is at the volition of a plan participant;

b. is not made in connection with the participant's death, disability, retirement or termination of employment;

c. is not required to be made available to a plan participant pursuant to a provision of the Internal Revenue Code; and

d. results in either an intra-plan transfer involving an issuer equity securities fund, or a cash distribution funded by a volitional disposition of an issuer equity security. [17 CFR 240.16b-3].