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Posted

Got a 401k plan sponsored by a brokerage house.

Everyone's got their own account. Sometimes commissions on stock trades are going directly to the participant as agent of record (that's a no-no). Sometimes the commission goes directly to the firm (also a no-no).

Question is, what can we do with commissions generated? Keep them in the participants' accounts so that no outside income is generated?

  • 2 weeks later...
Posted

Quite the conundrum…

Ask the sponsor to turn off commissions for their own plan.

Typically there are fees associated with recordkeeping (including trading) and administration of qualified DC plans. I do not see the conflict with the commissions (I am assuming this is the trading cost in a self directed account) being charged if they are reasonable.

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