Can we charge ee for work to find lost Participant, to Participant

[Jim Chad]

A Participant in a SEP is eligible for a first year contribution of $3,000. It is a long story but I want to charge as much as $450 to look for him and if necessary set up an auto IRA.

Can anyone tell me if it is legal to take this fee of up to $450 out of his $3,000 contribution?

[Bird]

I honestly don't know but it doesn't sound right to me. But fwiw, I would just set up the IRA using the employer's address or participant's last known address. For a SEP, I think investment companies recognize (maybe with some prodding) that the contribution is required and they must take the money.