Fees paid from plan

[dmb]

I have a plan that has over 100 participants and is required to have a 5500 audit each year. Can the fees for the 5500 audit be paid from the plan?? I believe they can, but can't find any confirmation, is there a site that mentions it?? Thanks.

[Mike Preston]

Yes, they can. I'll leave the citation stuff to somebody else on this one.

[R. Butler]

DOL Advisory Opinion 2001-01A talks about plan expenses which may be paid from the Plan and settlor expenses which cannot be paid from the Plan. Settlor expenses are arise from discretionary activities. Plan expenses that can be paid are those that are necessary.

You can find several articles on this with a quick search. I put a link to one I printed out a while back. It mentions 5500 prep. as a reasonable plan expense.

http://www.cigna.com/professional/pdf/CPA_...A_Blln0301r.PDF