Plan terminations using plan assets?

[Cathy from Chicago]

In a couple posts here, I've noted that plan termination fees may not be paid from plan assets. We're terminating a Plan and the Trustee asked that our fee be taken from the assets. This is a new experience. So, is it the IRS rules that prohibit termination fees being paid from Plan Assets or is it some Trust documents? Thanks in advance.

[rcline46]

Plan assets are the responsibility of the DoL. They have defined broadly settlor (sponsor) items and plan items, such as qualification. Look to the infamous Maldonado letter for details (DoL option letters.)

[Kirk Maldonado]

Thanks for the plug, rcline46.

However, I seem to recall that there is DoL guidance that is even more on point; expressly dealing with termination of (defined benefit) plans. I'm pretty sure that it is the DoL Information Letter to John Erlenborn, dated March 13, 1986.