Employers, you now have to disclose more to your employees than which day office birthdays will be celebrated this month. The U.S. Department of Labor recently ruled that plan sponsors must inform employees of 401(k) fees. Here, let me breakdown the timeline for you:
- July 1 – plan sponsors (that’s you!) should have received fee disclosure date from plan investment providers. If you don’t yet have this information, I suggest giving them a ring.
- August 30 – plan sponsors need to disclose plan facts and investment fees to enrollees.
- November 14 – plan sponsors must issue their first quarterly fee disclosure, which outlines the fees deducted from participant accounts in the third quarter.
To read more about what this requirement means to you and to how best to communicate 401(k) fees to your employees, click here.