401(k)-Type Retirement Plans and 408(b)(2) Rules - Are You Ready?
In February 2012, the Department of Labor's Employee Benefit Security Administration released a final rule under section 408(b)(2) for plan sponsor fee disclosure regulations.
Information that must be disclosed is in two categories: 1) Plan level information including general plan information, administrative expenses and individual expenses; and 2) Investment level information including performance data, benchmarks, fees and expenses, internet web site address and glossary. Both categories of information must be given to participants on or before the date they can first direct investments and then annually thereafter. Participants must receive statements, at least quarterly, showing the dollar amount and description of plan-related fees and expenses actually charged to or deducted from their accounts.
For calendar year plans, the initial annual disclosure of plan-level and investment-level information must be furnished no later than 8/30/12. The first quarterly statement must be furnished no later than 11/14/12 and needs only to reflect the fees and expenses actually deducted from the account during the July through September quarter to which the statement relates.
Consult your accountant for further information.
