How to treat reimbursement of management fees in PS trust

[Beltane]

An employer has begun reimbursing their PS trust for the quarterly investment management fees of the pooled trust. Its my understanding these reimbursements are to be treated and allocated as contributions, since they are deductible under IRC 404. Comments anyone? thanks

[Nate X]

You are correct. Reimbursements to the plan that are subject to IRC 404 should be treated as an employer contribution and allocated as such according to the plan document. The reimbursement is subject to any other employer contribution limitation such as IRC 415.

[Guest b2kates]

remember that such reimbursement is subject to the 415 limits.

if the plan is bumping up to the limit, the sponsor should consider if they want to pay the fees directly.