Not only do plan sponsors have a fiduciary responsiblity to provide a prudent 401(k) plan they should be concerned about the welfare for their employees. These transparency rules provide the tools to do just that. The Wall Street bullies have used the 401(k) plan as a cash cow for far too long.
Employee of the Month Reserved Parking Sign (Photo credits: myparkingsign.com)
Now, finally, many employees will see just how much their accounts have been whittled away by fees — fees that, in this market especially, can spell the difference between making money and losing money in a given investment.
Regardless of their size, companies that fail to comply with the new rules may be hit with severe fines and other sanctions.
Many people aren’t aware that when it comes to their 401(k) plans, employers and employees are basically in it together. Companies don’t benefit from substandard or overpriced plans. Indeed, top managers suffer because they invest in these plans themselves.
Plan participants(employees) need to pay more attention to their company sponsored 401(k) plan. This vehicle is your sole source of retirement and have more to say about the quality and value for the fees you pay.
Please comment or call to discuss ho this affects you and what you can do about it.
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