Not my plan but was asked by a co-worker to post this question:

In a 401K (Union) plan are there any restrictions on paying for the plan audit from participant balances?

Thanks

I'd say that it depends on what your collective bargaining agreement says. If it says just that you are going to provide the members with access to a 401(k), you would probably be OK in deducting all manner of expenses from participant accounts. If it says that expenses wil be paid by the sponsor, then that's obviously what you have to do. And if it is somewhere in between, then you have to decide what you are comfortable doing.

I do not see audit fees as any different from investment management recordkeeping, trustee, or any other normal expenses.

RCK