RosemaryCR

If he is re-titling the property from personal to the plan's trust, there is an exchange of property between the plan and a party-in-interest. When that box is checked 'yes' on the Form 5500, it's like saying "come audit me" in my opinion.

I will research further, but if one person is reimbursed $3000 because he's been there longer and has a higher account balance than the person that is reimbursed $100 I believe it causes discrimination issues. These are self-directed brokerage accounts so it's easily determinable how much was provided for each person. Bottom line is, fees paid by the employer should be paid directly and not pass through the trust so as to not cause such issues. I remember in the late 90's we were told this and there was precedent where the fee reimbursement was reclassified as a contribution on audit - just will require more research.

I see where you're coming from, JPod - instead of what kind of fees (not commissions and broker fees) let me rephrase my first question so that I can get my answer I need. Let's call them TPA fees. If the administrative fees come out of the trust and the employer reimburses the trust, I believe that is considered a contribution subject to 415 limitations. Does anybody have a cite as to yea or nay on that?

Fees charged by the investment company.

Just took over a new plan and haven't seen this in a long time - the employer reimburses investment fees through thru the trust instead of paying directly. I believe this is considered a contribution when they do that. Does anyone have a cite that clarifies this? Rosemary C. Raymer, ERPA, QPA, QKA