Roth 401(k)

[goldtpa]

I have a few clients that are considering the ROTH 401(k). I know that extra admin is required. I was wondering what other people were going to be charging. I was thinking of a per participant charge instead of a flat fee. I was just curious as to what others are doing.

In addition an attorney told me that his clients would not pay for the cost. He wanted the participants to pay the extra cost. Does anyone know if the DOL would allow this to be charged to the employee?

[Bird]

We haven't decided yet but are leaning towards a flat fee.

I can't imagine trying to charge participants for using a particular source; is that what the attorney is suggesting? I can see saying "Costs are escalating and we have to charge each participant $X." But doing it by source is silly (IMO), regardless of what DOL might or might not say.

I am a little concerned about distribution processing and the increased hassle. We have a fair number of self-directed plans that aren't on a recordkeeping system, and if someone elects a rollover, we won't be able to just say "OK, roll everything over." We'll have to step in and do an interim val for that account to determine the Roth part vs. the fully taxable part.