I am trying to find a DOL reference on what fees can be paid from plan assets. I am aware of the Kansas City DOL opinion of a few years ago, but remember reading somewhere that they relaxed that opinion somewhat. I cannot find anything that actually states what fees can be paid from plan assets though.

Also, have client that is upset because he cannot make the participants pay their own distribution fee. The client would like to charge everybody a one-time initial setup fee instead. That setup fee would be transferred from the participants account and placed in a forfeiture account. It will later be used to pay the distribution expenses. What is the groups opinion on this.

Thanks for your help.

Look here for DOL's 2001 advisory letter and hypos on plan fees. This backed away from some of the positions taken in the Kansas City initiative.

http://www.dol.gov/pwba/media/press/pr011901.htm