Fees

Understanding 401(k) plan fees has become a hot topic in recent years. But, in today’s volatile economy—where every dollar counts and is counted— it’s not more important than ever to understand, document, and monitor such fees.

In fact, 401(k) plans are increasingly viewed by many as their primary source of retirement income. This is especially true with the younger generation, who fear that Social Security may not live as long as they will.

In November 1, 2011, a new era of transparency will begin when sponsors of participant-directed DC retirement plans will be required to present the fees associated with their plans in one document, which they must share with plan participants. This mandatory disclosure is the third leg of guidance on fee disclosure issued by the Department of Labor (DOL) in the past several years (the others being Form 5500 Schedule C reporting and service provider disclosure).