New Disclosures! How to Prepare for the New 401(k) Fee Disclosures
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Are you ready to comply with the Department of Labor’s new disclosure regime? The following provides you with a brief overview of what the two major fee disclosures address and what plan sponsors may consider doing to react.
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Section 408(b)(2) |
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Section 404(a)(5) |
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Why: Added as a condition to an exemption from the prohibited transaction rules that, absent other exemptive relief, is necessary in order for service providers to provide such basic services as recordkeeping and investment management to ERISA plan clients.
What: Total fees paid from the plan to service providers – fee disclosure produced and delivered by the service providers to the plan sponsor. |
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Why: To ensure that participants are provided with “sufficient information” to make informed investment decisions.
What: Participants and beneficiaries must receive certain general plan- and investment-related information. In addition, participants must receive statements, at least quarterly, showing the dollar amount of certain administrative and individual expenses actually charged to or deducted from their plan accounts. |
Find out why these new disclosure requirements may cause even more confusion about retirement plan fees among participants and what you can do about it right now.
Join 401(k) Advisors and Groom Law Group, Chartered for a 45 minute educational webinar as we discuss these developments and highlight the important take-aways for plan fiduciaries.
Click here to watch the Webinar
Questions? Call 800.959.0071 ext 250
About 401(k) Advisors
401(k) Advisors is a group of dedicated specialists focused solely on delivering retirement plan consulting services. As one of the largest independent advisory firms in the U.S., our services – including investment analysis, plan design, fee benchmarkings and employee communications – help to enhance investment opportunities for participants, while protecting fiduciaries from liability and loss. Learn more at www.401kadvisors.com.
About Groom Law Group, Chartered
Groom Law Group, Chartered is a Washington, DC-based law firm of over 50 attorneys with a primary focus on employee benefits issues. More information about the firm and its attorneys can be found at http://www.groom.com
