March 15, 2013

How to interpret 401(k) disclosure laws

Legislation that took effect last summer was a huge step toward clarifying and enlightening plan sponsors and participants about the fees they are paying for their 401(k) plans.

Each plan must provide plan sponsors and their fiduciaries a 408(b)2 document, also known as a fee-disclosure report. Many studies have revealed that the majority of plan participants feel they are not paying any fees to participate in their 401(k) plan. Plan participants must now receive a 404(a)5 fee-disclosure, which usually is incorporated into their quarterly statements. Unfortunately, most plan sponsors and participants do not know what to do once they receive these…

Christopher Wood
Christopher Wood is editor and publisher of BizWest, a regional business journal covering Boulder, Broomfield, Larimer and Weld counties. Wood co-founded the Northern Colorado Business Report in 1995 and served as publisher of the Boulder County Business Report until the two publications were merged to form BizWest in 2014. From 1990 to 1995, Wood served as reporter and managing editor of the Denver Business Journal. He is a Marine Corps veteran and a graduate of the University of Colorado Boulder. He has won numerous awards from the Colorado Press Association, Society of Professional Journalists and the Alliance of Area Business Publishers.
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