A few weeks ago Congress was unable to pass legislation that would provide more information on the fees 401k plan participants are paying. According to an article in USA Today, it looks like the Labor Department may be stepping up to help the 65 million Americans who are invested in 401k, and similar, plans.
The proposal would require employers to disclose more information about the fees in their plans and do so in a clearer format. From the article . . .
Employees would receive details about investment expenses and past performance in a chart or similar format to allow them to easily compare fund options. Retirement plans would also be required to compare funds' investment performance with a benchmark index, such as the S&P 500. Additionally, for the first time, the plan would have to disclose each quarter the dollar amount that each participant pays for administrative services such as accounting and recordkeeping.
This proposal definitely looks like a big step in the right direction. However, it's not a done deal. We'll keep an eye on how this progresses and keep you informed as more details and information about this proposal become available.
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