Distribution Fees

[emmetttrudy]

Can the Plan Sponsor pay distribution fees from the Plan? For example, if the lump sum is $500, can there be two checks written from the Plan - one for $500 to participant and one for a $100 processing fee for the distribution? Or do the fees have to be paid outside of the Plan?

[Andy the Actuary]

We are speaking of a DB plan?

Provided the Plan document so provides, the Plan Sponsor can direct the Trustees to pay most administration costs directly (e.g., auditor, actuary, pbgc, etc. but not cost of FASB).

[david rigby]

Yes, and we are back to the discussion of which expenses can, or cannot, be paid by the plan. Do a search on the word "settlor".