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A former employer deducted a "fee" charge when I contacted him to get my 401 funds moved to my new employer's roll-over account. It was 1 year after I was dismissed from his employment. Is it legal for him to deduct this "fee" from my personal funds?

  • I'm voting to close this question as off-topic because is belongs on money.stackexchange.com – BlueDogRanch Feb 12 '18 at 18:40
  • @BlueDogRanch This is clearly a question asking about the law. Something being on topic elsewhere is not evidence that it is not on topic here. – Matt Feb 12 '18 at 19:54
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This handbook and FAQ published by the United States Department of Labor describes that "individual service fees" are permitted, including for selling and distributions, if they are described in plan documents. The plain English limitation is described as follows:

Keep in mind that the law requires the fees charged to a 401(k) plan be “reasonable” rather than setting a specific level of fees that are permissible. Therefore, the reasonableness of fees must be determined in each case

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