While the initial results of the 404(a)(5) participant fee disclosure regs have been very muted, plan advisors should not be lulled into complacency. Participants need to know that they pay fees which are used to support a tax deferred savings account — an account which often includes a match that has been extremely beneficial. But first they have to get over the idea that this is an entitlement which their employer should provide for free.
Smart401(k) provides a simple and easy-to-understand infographic explaining the types of fees, the services that are provided and the types of companies that provide them. Something similar explaining unbundling of pricing and level revenue share would help too — but that’s a discussion for another day.
