ERISA Recapture Accounts

[austin3515]

$100M plan gets back $50,000 in revenue sharing and it's put into an ERISA Recapture Account to play pan expenses. Auditor fee is $25,000. If the auditor fee is paid from this recapture account, is this indirect compensation? The implications of course are:

-408b2 reporting requirements

-Schedule C reporting (as indirect as opposed to direct).

Any guidance or articles from the IRS or the "big" names (Reliusu, McKay, Reish, etc) would be great!

Thanks,

[austin3515]

http://www.dol.gov/ebsa/faqs/faq-sch-C-supplement.html

Question 13 is directly on point.