Can a former employer deduct a &quot;fee&quot; when issuing a check for my new roll-over?
<p>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?</p>

<p>This <a href="https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/publications/a-look-at-401k-plan-fees.pdf" rel="nofollow noreferrer">handbook</a> and <a href="https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/retirement-plans-and-erisa-consumer" rel="nofollow noreferrer">FAQ</a>  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:</p>

<blockquote>
  <p>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</p>
</blockquote>

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