401(k) plans will have to disclose fees (by 2012)

Washington Post ^ | 10/16/10 | Margaret Collins

[Libloather]

401(k) plans will have to disclose fees
By Margaret Collins
Saturday, October 16, 2010; 8:55 PM

Employer-sponsored 401(k) retirement plans will have to disclose fees that savers pay on investments and transactions by 2012, the Labor Department said.

"Participants will be able to understand the dramatic effect fees play in the returns that they get," Assistant Secretary of Labor Phyllis Borzi said.

The regulations, which will apply to the plans by Jan. 1, 2012, will require companies to provide investors information on administrative and investment fees charged to their accounts in their quarterly statements, the department said.

Regulators and legislators have been studying fees for 401(k) plans as more workers use them to save for retirement. An estimated 72 million participants have 401(k)-type retirement plans with assets totaling about $3 trillion, the department said.

"Participants really haven't been confronted with the fees they pay," said David Wray, president of the Profit Sharing/401k Council of America, a Chicago-based nonprofit association of employers that sponsor retirement plans. While investors have been able to get many details on fees upon request or by searching through paperwork, "the difference here is some of that information is going to be given to you whether you ask for it or not," he said.

[Libloather]

"Participants will be able to understand the dramatic effect fees play in the returns that they get," Assistant Secretary of Labor Phyllis Borzi said.

They should do the same with Sosha Security.

[GeronL]

before or after the government siezes them?

[berdie]

later

[KarlInOhio]

Many years ago I was on my former company's 401k committee when we were selecting a new investment company. I was difficult to get the broker to let us have a simple, low cost S&P 500 index. They only wanted to offer expensive bond and specialized stock funds.

My current company (much smaller than the previous one) just picked Schwab and lets the employees invest in anything at the retail prices which are far cheaper than the old company's plan.

[wac3rd]

Can I see how Government workers’ pensions are funded? Oh, yes, through tax dollars for life.

[VeniVidiVici]

What?? You mean they are not free?

DEMOCRATS PROMISED ME A 401K THAT’S FEE FREEEEEEEE!!!!

That’s because they are going to quit letting folks sock away pre-tax money into their 401Ks.

That’s right! The Democrats will only let you sock away your own money with after-tax cash. Then they will tax you again on the backend!!

This is after they already take 50% of your money for income and payroll taxes!!!

[Undocumented_capitalist]

Looks like a good bill.

[The_Media_never_lie]

Isn't this hyper-ironic? The government is now concerned with what we are getting for what we pay? I thought the 401k fees were already posted?

How about what we get for what we pay in income tax?

If the government goes on to steal my IRA under some ruse, it will be the material theft of a lifetime of work. All bets are off as to what would happen thereafter. I would really hope this would not happen.