Reminder Regarding 401(k) Participant Fee Disclosures

The Department of Labor regulations (Code Section 404a-5) place 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.

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  • Active participants
  • All employees eligible to contribute to the plan but have chosen not to
  • 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 becomes 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, resulting in the plan losing 404(c) protection.

For more information, visit with one of employee benefits administration experts.