401(k) termination fees
Paige
153 Posts
For the past several years, we have been using a law firm to broker our 401(k) plan (yes--we're a smaller employer who didn't know very well in the beginning). Now we're switching over to a new TPA (a much LESS expensive one).
On our latest invoice from the broker, the added a $3,500 charge for data preparation for the termination. Does this seem right?!?!
I'm reviewing the account application and it does not address plan termination. The Payment Agency Agreement addresses termination by stating that we need to give prior written notice (which we did). In the Consulting Services Agreement, it states that the Agreement can be terminated at any time with the 60-day written notice. It says nothing about termination fees.
Can we argue and/or negotiate this fee?
On our latest invoice from the broker, the added a $3,500 charge for data preparation for the termination. Does this seem right?!?!
I'm reviewing the account application and it does not address plan termination. The Payment Agency Agreement addresses termination by stating that we need to give prior written notice (which we did). In the Consulting Services Agreement, it states that the Agreement can be terminated at any time with the 60-day written notice. It says nothing about termination fees.
Can we argue and/or negotiate this fee?
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