Allowable Participant Fees

[mlp0816]

Have a client who signed a Auto Rollover Agreement for balances between $1k and $5k. For "lost" participants, we normally send them to "search" to locate a good address for them. In the past, we have charged the $25.00 fee to the participants account and if moved to an IRA, a fee of $30.00 to set the account up. Are these participant fees allowable to charged against the participant account?

Thanks.

[Lou S.]

As long as you have properly complied with the fee disclosure notices to participants in advance and these fees were disclosed I don't see an issue.

Of course that raises the question of how do you notice missing participants about fees that may be charged to their accounts?