Now that 401(k) retirement plan sponsors are disclosing more about the fees paid to plan providers, will the increased transparency cause companies to rethink these relationships? Yes seems to be the prevailing answer.
Two Department of Labor rules that kicked into gear this year require plan providers and companies that sponsor plans to open the books on plan fees and investment costs to the country's 72 million participants in 401(k) plans.
The information about fees must be easy to read and compare, in plain dollars and cents. The disclosures must include the types of fees paid, what they were for and who received them. Those receiving fees could run the gamut from providers to record keepers, investment firms, consultants, advisers and other third parties, depending on the plan.
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