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company closing 401k plan

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#1 molly55


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Posted 15 April 2010 - 11:04 AM

Our company is closing- one of the employers is starting a new company or taking over this company. They have decided to close the 401k plan. However they have mentioned that there will be charges incurred, administrative charges to close it, and these charges will be charged back to the employees. This is a very small company.
Is this legal? do they have to give written notice of any administrative fees they will charge?
I have another 401k plan with a company I used to work with, and they charge quarterly fees for administrative costs, and they have always given at least 30 days notice of any changes to the plan.

There are very few employees in the plan, but there are also some former employees that are still in the plan. If charges are legal and incurred would it be to all members in the plan, I assume. Is there some reasonable way to determine the actual fees and how they are divided amongst the employees?
who would I ask these questions? Attorney General?

#2 Tom Poje

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Posted 15 April 2010 - 12:13 PM

this might be a starting point


especially see item 3 in the paragraph beginning Although the DOL...

The DOL would be probably be a good contact as to what would be considered a reasonable expense that could be passed on