12b-1 fees paid after a plan liquidation

Right now 12b-1 fees are returned to participants by the institutional trustee.

 After a plan is terminated and liquidated what can the trustee do with 12b-1 fees it receives in arrears? This is further complicated when a plan sponsor has dissolved and there is no entity to which 12b-1 fees in arrears can be returned.

Can the trustee/former trustee feel comfortable that this is no longer a prohibited transaction because the plan and/or the plan sponsor no longer exist?

While it's not your exact situation, I think FAB 2006-01 has helpful information in the section titled Plan Fiduciary -- Allocation among participants and beneficiaries.  In the last paragraph of the section, it says that if the amount received is less than the cost of allocating and distributing to participants, the trustee can refuse to accept the payment.   If that isn't the case, the section describes options for allocating the amounts to participants and allows some flexibility if amounts for some participants are de minimis.

https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/2006-01

The plan exists as long as there are plan assets, so the PT rules still apply.

DOL FAB 2006-1 was what I was thinking of also.  We've actually had one terminated plan with all assets already distributed send subsequently received litigation settlement checks back (small amounts)... not the same as what the FAB specifically addresses (demutualization proceeds), but gave sort of the general thinking of such issues.

The OP mentions "12b-1 fees are returned to participants by the institutional trustee".  EPCRS has a section on "Delivery of small benefits"... if less than $75, distribution is not required if costs of processing and delivering the distribution exceeds the amount to be distributed.

 Kevin C and chc93,

The authorities you've cited are perfect. Thank you both so very much,