Client Alert

New Opportunities for Passing Through to Participants of Defined Contribution Plan Administrative Costs

June 01, 2003

Ethan Lipsig & J. Mark Poerio

The Department of Labor has just announced a more liberal view about charging plan expenses to the accounts of participants in 401(k), ESOP, and other defined contribution plans. Field Assistance Bulletin 2003-3 opens the door for passing through expenses to participants in appealing ways that have rarely been used in the past because of legal concerns raised by the Department of Labor in prior pronouncements.