May Employer Reimburse Fees Back To Participants?

[Guest ralar]

May an employer reimburse fees back to the plan's participants (into the plan)? If yes, does this amount have to be reported and included as an annual addition?

[Jon Chambers]

Yes, and yes. If the employer pays fees (instead of reimbursing), it's probably not an annual addition.

[Guest]

just what type of fee are you talking about?

If its the fee investment houses charge when you liquidate a fund and move to a different investment house, then no, IRS treats that as an additional contribution.