The Department of Labor has issued a regulation (Code Section 404a-5) placing fiduciary responsibility on plan administrators, which is typically the employer, to provide a disclosure of their plan fees, expenses and investment disclosures related to their individual retirement accounts at least once in a 14-month period without regard to whether the plan operates on a calendar year or fiscal year basis. The disclosure must be provided to active participants, all employees eligible to contribute to the plan but have chosen not to, and any beneficiaries and alternate payees.
Any changes to annual plan-related disclosures must be disclosed to participants at least 30 days and not longer than 90 days before the change become effective including:
- General plan-related information
- Administrative expenses
- Individual participant and beneficiary expenses
- Investment-related information
Failure to comply with these disclosure regulations will cause you to have breached your fiduciary duty and will cause the plan to lose 404(c) protection.
Feel free to contact your employee benefits administrator with any questions.
