No doubt some firms are scrambling because of the new 401(k) fee regulation. Here’s some great news:
The Department of Labor pushed back the compliance deadline AGAIN.
Now employers with 401(k) plans have until Aug. 31 before they must be in compliance.
While there are an array of 401(k) fees that employees must be made aware of, the DOL has broken down the fee types into three categories for disclosure. They are:
Plan-level (administration) fees. These are every day fees, such as recordkeeping, accounting and legal services. They can also include services like customer service.
Investment fees. The bulk of most plans’ fees are spent in this area. They’re generally made up of a percentage of the assets invested and are deducted directly from an investment’s return.
Individual service fees. These are separate fees charged for requested services. An example would be fees for taking out a 401(k) loan.
For more help on complying with the 401(k) fee disclosure regs, click here.