Fees Charged to Participants

[Dougsbpc]

We administer a few DC plans that insist on charging terminated participants the distribution processing fee. We know this is somewhat common. Is this possible with a distribution from a defined benefit plan?

[My 2 cents]

Absolutely not!!!!! The participants are entitled to the defined amount - no more, no less. The sponsor must bear all expenses.

[david rigby]

I've learned that my knowledge is often imperfect, so I omit the exclamation points.

More importantly, you can gather useful information by a careful search of these Message Boards, often finding that your question has been asked before. For example,

http://benefitslink.com/boards/index.php?showtopic=30393

http://benefitslink.com/boards/index.php?showtopic=43403

[Dougsbpc]

Thanks for the replies.

We did not think this could be done with a DB distribution. A CPA recently mentioned that one of his clients had a DB plan and that they charged participants distribution processing fees.

The benefitslink board is fabulous. However, we have found the search feature to not be the greatest.