stayingbusy Posted January 16, 2023 Posted January 16, 2023 Is there a way to avoid plan asset status for revenue sharing? Client, a large 401k plan, has a large amount of revenue sharing that will continue to be forfeited. I am aware of DOL Advisory Opinion 2013-03A in relation to plan recordkeeper accounts. But can client take the money from that account for their own use? I feel like this was more for providers to have relief when transitioning the money. Any insight is appreciated it.
Bill Presson Posted January 16, 2023 Posted January 16, 2023 Not sure I know what you mean by "forfeited." Please explain. The solution is for the sponsor/trustee/fiduciaries to negotiate funds in a share class with lower or no revenue sharing. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
stayingbusy Posted January 16, 2023 Author Posted January 16, 2023 Sorry misspoke when I stated forfeited. They just have tons of money sitting around as plan assets. But asides from negotiating a lower or no revenue sharing, there is no other way of avoiding plan asset status from revenue sharing, correct? That is what the research is leading me to belief, but not sure if I was missing a workaround.
Bill Presson Posted January 16, 2023 Posted January 16, 2023 Agreed. William C. Presson, ERPA, QPA, QKA bill.presson@gmail.com C 205.994.4070
Patricia Neal Jensen Posted January 18, 2023 Posted January 18, 2023 Bill Presson is correct. Negotiate a share class without revenue sharing. Bill Presson 1 Patricia Neal Jensen, JD Vice President and Nonprofit Practice Leader |Future Plan, an Ascensus Company 21031 Ventura Blvd., 12th Floor Woodland Hills, CA 91364 E patricia.jensen@futureplan.com P 949-325-6727
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