by Alyssa Oursler | August 20, 2012 9:54 am
For the first time, those saving for retirement will actually be able to tell just how much of their savings they are losing thanks to fees.
Because now, the Department of Labor is requiring that employers disclose fees on 401(k) statements beginning at the end of this month.
Disclosure statements will come annually and quarter and each one will include different details. The annual report, for example, will include performance and fees, including returns compared to a benchmark. And it could be a bit confusing — the report is expected to be at least seven pages long.
The disclosure also does not compare fees to other funds. Still, such information is long overdue, analysts say, and is a big step for openness in personal finance.
In fact, nearly three-quarters of participants didn’t think they had to pay a fee at all, much less know how much it was, according to an AARP survey.
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