Discrimination in payment of plan investment fees?

[Guest blaum8]

I'm working with a client that wishes to pay the cost of investment account maintenance fees for active employees, but for those terminated vested employees who leave their balances in the plan, the sponsor does not want to pay the investment account maintenance fee. This would seem to be a benefits, rights and features issue, but since no HCE who left their money in the plan would have their expenses paid either, my thought is there would be no discrimination. Is this correct? Are there any other related issues I should be considering before filing my Demo 3?

[mbozek]

See IRS regs 1.411(a)-11 for a provison that prevents the plan from containing a provison that results in a significant detriment to a terminated employee electing to leave the funds in the plan. This provison is not a BRF applicaton but applies as a general qualificaton matter. The purpose is to insure that distributions of vested benefits in excess of $5,000 are made on a voluntary basis.