Guest Bill Schulze Posted June 9, 1999 Posted June 9, 1999 Must the plan pay for distribution fees or can the participant be charged the fee?
david rigby Posted June 9, 1999 Posted June 9, 1999 I think the answer is no. But I suggest you look on the 401k Message Board. Going back about the last 6 months, there are a few different discussion threads on the topic of administrative fees. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Kirk Maldonado Posted June 11, 1999 Posted June 11, 1999 There was a request for an Advisory Opinion from the DOL on this topic, but I haven't heard anything for years. The DOL originally said that you couldn't charge participants for distributions, but I bet they backed off because that position makes no sense in a shrinking plan because it shifts the costs from the leaving participants to the remaining participants. I don't see a policy reason to punish long-term participants to benefit short-term participants. Kirk Maldonado
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