Settlor Fee or not

[cpc0506]

Can the cost of the plan document be paid from Plan Assets? What if the plan is restated for law changes?

We also charge an annual document maintenance fee to our clients. Can this fee be paid from plan assets?

Thanks for your replies.

[BG5150]

I would say:

1) Original plan doc? No. Settlor function.

2) Restatement and required interim amendments? Yes. It must be done.

3) Annual maintenance fee? Yes. Admin fees can be paid from the plan.

(And, can you elaborate on what the maint fee is for? How does a plan doc need maintenance during the year? )

My edits in italics. Man, I really should refrain from posting on day before holiday weekends....

[Bird]

Settlor functions include establishing and terminating the plan, and they're supposed to be paid by the sponsor (not the plan). Administrative stuff can be paid by the plan. I'd consider any kind of ongoing admin/maintenance fee to be payable by the plan.