The investment game just got a little more complicated. Earlier this year, the Department of Labor mandated that 401(k) plans disclose hidden fees to their customers. Over the years, this information has not only been hidden on statements for employees, but most employers had no idea these fees were being assessed. It is estimated that is ruling will affect more than 72 million employees that currently participate in 401(k) plans and that nearly three quarters of these participants did not know they were being charged fees.
The fee disclosure statements will come in two different forms. First, customers will receive an annual statement. The statement will allow customers to compare the fees to other plans.
Customers will also receive a quarterly report. This will be sent out every few months and will provide greater detail about how much an individual is paying.
By making the fees visible to consumers, the Department of Labor has given customers a piece of the missing investment puzzle. The disclosure of fees will allow customers to compare their plans and make sure that they are getting the most out for their investment.