Jump to Navigation
Jump to Content

401(k) Fee Disclosure: Plan-Related Information

General plan information must be given to the employee on or before the date on which a participant or beneficiary can first direct investments and once a year thereafter. All employees eligible to participate in the plan, whether or not enrolled, must be given the information. General plan information can initially be provided in the Summary Plan Description. Notice of any change to plan-related information must be given at least 30 days, but no more than 90 days, before the effective date of the change.  The information to be disclosed includes the following:

  1. A description of the investment alternatives offered;
  2. An explanation of the kinds of record-keeping, legal, accounting, and other plan administrative expenses that can be charged to an account unless those administrative expense are included with investment management fees;
  3. A description of the method of allocating administrative charges to individual accounts, such as pro rata or per capita;
  4. Directions on how and when the employee can make investment choices;
  5. A summary of any limits or restrictions on investment choices or transfers into and out of an investment.
  6. An explanation of any fees or expenses that may be charged on an individual basis, such as loan fees, processing fees for qualified domestic relations orders, fees for investment advice, sales charges, commissions, redemption fees or transfer fees, if these fees are not reflected in investment-related fees described below.

Individual plan-related fees actually charged must be disclosed in dollars at least quarterly and may be given as part of the individual benefit statement. The individual plan-related fee disclosures include the following:

  1. Total dollar amounts actually charged to the employee’s account during the last three months for administrative services, such as accounting and record-keeping if those “plan-related” fees are not included with “investment-related” fees;
  2. A description of the services to which the charges relate;
  3. Fees applied to an individual’s account in the last three months for special services, such as processing a loan request or a qualified domestic relations order, fees for investment advice, sales charges, commissions, redemption fees or transfer fees;
  4. If applicable, an explanation that in addition to the listed fees and charges, some administrative expenses were paid out of the annual operating expenses of the investment alternatives (e.g., revenue sharing charges, Rule 12b-1 fees, sub-transfer agent fees).

 

Read about the disclosure of investment-related information.

Go back to the summary of the 401(k) fee disclosure regulation.

print