Are you satisfied with how your 401K plan works? Do you know what your money is invested in, and what fees or charges you pay for the management of your investments? Here’s some good news for plan participants who want to know more about their 401Ks.
Fiduciaries of 401K plans are now required to inform plan recipients of all expenses and fees associated with their 401Ks, the Labor Department recently announced. Approximately 72 million American workers will start receiving quarterly reports from their 401K administrators, which will provide details such as every deduction or fee implemented in their retirement accounts.
Hilda Solis, Secretary of Labor, stated that the rule will allow across-the-board disclosure to employees as to their payments for their retirement plan investment options. She also said that this move permits workers easier access to important information related to their investments, which will give them the ability to shop around for plan options. In addition to this provision, plan fiduciaries are also required to give investment option comparisons among the available plans, as well as basic information for every investment.
Today, most 401K participants decide on their investment options, although they aren’t usually given what they need to make informed decisions. The Labor Department says that this rule changes all that.
Phylis Borzi, Assistant Secretary of Labor for the Employee Benefits Security Association, said that this move helps give employees the necessary tools towards making better investment decisions for their retirement plans. She further explained that the detailed information provided about the various investment options available can help them make potentially more profitable investment decisions.
If you’re a plan holder who wants to get more out of your 401K, you’ll find the required disclosure of all plan expenses, as well as the provision of information about available options for investment beneficial. Talk to your financial planner to help you select the best investments for your retirement portfolio.
Puritan Financial Group has years of experience in dealing important financial decisions. Puritan Financial Group will listen to you and your loved ones and craft a custom financial solution that supports your life goals.