Paying sanction penalties with plan assets

[Guest Enda80]

I know that you cannot do this, but can anyone give a precise citation?

[JanetM]

Can you justify that it is "reasonable" expense? Since it is due to error or omission, it could have been avoided.

[Kevin C]

ERISA Sec. 403.

©(1) ASSETS OF PLAN NOT TO INURE TO BENEFIT OF EMPLOYER; ALLOWABLE PURPOSES OF HOLDING PLAN ASSETS. --Except as provided in paragraph (2), (3) or (4) or subsection (d), or under section 4042 and 4044 (relating to termination of insured plans), or under section 420 of the Internal Revenue Code of 1986 (as in effect on the date of the enactment of the Pension Protection Act of 2006), the assets of a plan shall never inure to the benefit of any employer and shall be held for the exclusive purposes of providing benefits to participants in the plan and their beneficiaries and defraying reasonable expenses of administering the plan.