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OK, I guess we don't disagree then. I wouldn't change my position if it is outstanding for a while but it can get...not pretty.

Can they pay a portion of your fees with the residual dividends in January and show it as a payable on the final 2020 form 5500?

On your two questions: 1. The paraphrase and quotation are from the rule cited, 29 C.F.R. § 2550.408b-2, which interprets ERISA § 408(b)(2). The hyperlink points to the government’s Electronic Code of Federal Regulations rendering of that rule. 2. The focus is on whether the fiduciary that engages a service provider makes a fully independent decision. Even if neither the service provider nor its owner-operator is the engaging plan’s fiduciary, one might consider whether a desire to please the owner-operator, perhaps because she is company B’s minority shareholder, could tempt a decision-maker to use less than her best judgment for the retirement plan’s exclusive purpose. These are sensitive questions, and each party to the would-be service agreement should want its own lawyer’s advice.

so following bill presson might be the way to go? no plan assets being paid.

You are good. Employer can NOT say "nope", arbitrarily or not.

Or Scuba 401, you can always follow Bill Presson's practical advice and keep plan assets out of this (employer pays all TPA fees).