DES MOINES, Iowa — The Department of Labor says it will require companies providing 401(k) accounts to lay out all the fees and other charges in plain language beginning Jan. 1, 2012.
The new regulations, announced by Secretary of Labor Hilda Solis, will affect about 483,000 retirement plans.
Solis said the 72 million workers enrolled in 401(k) plans will now have the detailed information they need to do easy comparisons of the costs of their investment choices in their plan.
Companies must begin to lay out the administrative expenses, including accounting and recordkeeping fees, and the charges that apply to the individual choices a worker makes, such as fees charged for loans.
The charges for administrative expenses must be laid out in the quarterly reports workers receive and on a website.