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Distribution Fees


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Guest Runner
Posted

I am looking for something in writing that discusses the limitation on participants paying for their own distribution fees from a qualified plan.

Any help would be appreciated.

Posted

you will not find anything, anywhere from the DOL (who is in charge here) or the IRS on participants paying their own fees for termination calculations and distributions.

The DOL advisory letter from 94 on QDROs states one cannot charge a participant for exercizing their ERISA rights. Most take that to apply to distribution fees also.

The DOL at both the ASPA convention and the Mid Altantic conference this may has stated they have no official position at this time, but they are looking into it.

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