Reimbursement of Expenses to Employer-in next Plan Year?

[Guest dlm]

An Employer has a profit sharing plan. Fiscal year and plan year end 9/30.

Employer started paying investment management fees out of plan assets about 2 years ago.

For the 98/99 Plan year, the employer by mistake paid the fees from the company.

Now the employer wants to know if they can be reimbursed for the fees at this time.

The 9/30/99 statements are done.

If we redo the statements and reflect the fee in the g/l, are we okay?

Can we include the fee in the 99/2000 g/l?

Does it matter which year it's incurred and expensed in?

Or is this an issue because the terminated employees will not share the fee if they are paid out?

Is it a facts & circumstances issue?

Thanks

Dlm

[Dave Baker]

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