Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Running Your Business

Lifting the Lid on 401(k) Fees (CFO)

Your article was successfully shared with the contacts you provided.

401(k) plans are about to become a whole lot more transparent. Starting next year, the Department of Labor will require sponsors to disclose specific plan fees and investment information in an easy-to-read format showing exactly what each participant paid for their plan in the previous quarter, and who the money went to. As the disclosure deadline approaches, sponsors are bracing for a consumer backlash. And while many people have no idea that their 401(k) costs include fees, Joel Shapiro, vice president of ERISA compliance at 401(k) Advisors, believes most plans are reasonably priced because recordkeepers have worked to make the bidding process competitive. One real danger for enrollees? Inexperienced plan sponsors that try to administer the plan without an advisor’s help risk noncompetitive pricing.