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Fireworks and 401(k) Fee Disclosure

Can July get any better? I am sure you are all up to speed on fireworks, so please give me a minute or two to talk about 401(k) fee disclosures and how new legislation is changing how fees are disclosed to plan sponsors and participants. Right now, many fees associated with investing and administering 401(k) plans are paid by the plan participants—i.e. you. The problem is that those fees are not easy to find because participants never get a separate bill to pay. The fees are either deducted from their account or bundled into the expense ratio of the mutual funds used by the plan. However, effective July 1st, the Department of Labor has adopted new rules about how plan sponsors must disclose these fees to plan participants.

By July 1st most vendors that provide services to plan sponsors must disclose how much and for what they are getting paid. Plan sponsors should then evaluate if they are getting reasonable value for the services provided. By the end of August, plan sponsors must disclose to plan participants how much they pay in fees to participate in their plan.

Information is power. The new disclosure rules should arm plan sponsors and participants alike with the information they need to become better informed consumers. Participants should speak up if they don’t believe they are getting a good value.

This fourth, let’s celebrate our independence from high cost 401(k) plans.

 

Important Disclosure Information

Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request. This discussion is not a substitute for personalized advice from RegentAtlantic. This information is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

The information in these written materials is only offered for purposes of providing investment education and should not be relied upon as investment advice as defined under the Employee Retirement Income Security Act of 1974 (“ERISA”). RegentAtlantic and its representatives do not intend to be a fiduciary for purposes of ERISA in the delivery of these written materials or in the delivery of any verbal presentation of such materials

Important disclosure information

Please remember that different types of investments involve varying degrees of risk, including the loss of money invested. Past performance may not be indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or undertaken by RegentAtlantic Capital, LLC (“RegentAtlantic”) will be profitable.

Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request.

This article is not a substitute for personalized advice from RegentAtlantic. This article is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

RegentAtlantic does not provide legal or tax advice. Please consult with a legal and or tax professional of your choosing prior to implementing any of the strategies discussed in this article.

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