The new fee disclosure regulations require employers(plan sponsors) reveal to plan participants all the feescharged to the 401(k) plan. It is important for all participants to understand what fees are being charged to their accounts and verify that there is value in those fees.

In these summaries, you should see:

• What each investment option in your plan costs you (the “total annual operating expenses”), expressed as both a percentage and as a dollar amount for each $1,000 invested.
• A list of fees for administrative services that are charged to or deducted from individual accounts, such as fees for legal, accounting and recordkeeping services.
• An explanation of any fees and expenses that you may incur based on actions you take, such as fees for trading, plan loans, hardship withdrawals or processing divorce decrees to split assets.
• Performance data that can help you compare each investment option against an appropriate benchmark.

These disclosures aren’t personalized. You won’t be told how much your individual account is actually being charged, for example. But for the first time you’ll have a big-picture view of your plan’s costs.

A small 1% in additional fees will result in a significant reduction in your 401(k) account once you retire.

Please comment or call to discuss how this affects you and your retirement prospects.