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How and When to Pay Plan Expenses with Plan Assets
Ron J. Church • Nov 05, 2020
Some retirement plan expenses can be paid for with plan assets — but many can’t. Which are the
“reasonable and necessary” retirement plan expenses that can be paid out of plan assets?
Generally, services required to maintain the plan’s compliance and administration can be paid from plan
assets. Obvious examples include the annual nondiscrimination testing and preparation of the annual Form
5500. Another example is a plan amendment or restatement that is required because of a legislative
change.