Workers with a 401(k) retirement account will soon know exactly how much they’re paying in fees.
The Department of Labor released new rules on Thursday designed to force companies that provide 401(k) plans and services to employers to spell out all the fees charged.
Most people don’t know that more than a half a dozen fees may be charged against their 401(k) account for recordkeeping, administration, investment advisory, brokerage and management services.
In addition, at least eight kinds of indirect fees and expenses could be charged. These are often shaved off the top of the investment gains.
Any service provider paid more than $1,000 in connection with retirement accounts must provide detailed reports on fees, according to the new rules. That includes brokerage services and recordkeeping companies.