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Allocation of Plan Expenses


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Posted

Let's assume a Plan pays reasonable non-settlor expenses. Can these expenses be allocated to participants on a fixed amount per participant basis (e.g. $3 per month per participant)?

Usually, we see admin expenses allocated like earnings based on account balances. But is a fixed amount allowed under ERISA?

Thanks!

Posted

I have seen many DC plans that allocated administrative costs as a flat annual change per account. (Most of those were multiemployer plans.)

John Cheek CPA

www.cpaSPAN.com

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