Hidden 401k plan fees to be revealed

My Note –

I just had to post this after it reminded me how often I was mocked in the last twenty years when I said to friends that there were all kinds of fees on their 401k plans. Surprise, surprise, surprise . . .

– cricketdiane

An excerpt from the article –

This ruling affects about 72 million employees who participate in 401(k) plans with about $3 trillion in assets, according to Department of Labor estimates.

For decades, 401(k) plan fees were mostly invisible, even to employers who offered these retirement plans to their workers. In fact, a separate rule issued by the DOL last summer requires plan providers to disclose to plan sponsors all direct and indirect compensation related to 401(k) plans — effective July 2011. And there are plenty of ways these plans can get dinged by fees, many of which get passed on to workers.

The upshot for plan participants: They will have more data to make better 401(k) investment decisions. Fees for 401(k) plans run the gamut and can include record keeping, legal, management services and administrative charges. Additionally, 12b-1 fees, which cover marketing and distribution costs, are sliced off the top of mutual fund investments.

from –

Hidden 401k plan fees to be revealed

found here –
http://www.bankrate.com/finance/retirement/hidden-401-k-plan-fees-to-be-disclosed-1.aspx

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