Disclosing 401(k) Fees

Workers deserve to retire with the dignity and comfort that they have earned, but as the Associated Press reports, incomplete information about hidden fees can drain thousands of dollars from 401(k) plans. Democratic Congressman George Miller gave a news conference, stating that Congress needs to ensure that "clearer and more complete information" are given on such fees:

Millions of Americans save diligently for their retirement, only to discover later that "there's a lot of people who are putting their hands into that money," Miller said.

Current law does not explicitly require disclosure to investors of comprehensive information on fees connected with 401(k) plans, the employer-sponsored schemes under which workers make tax-deferred contributions from their salaries.

A stunning 80 percent of 401(k) investors are unaware of the extent of the fees, according to congressional investigators. The AP continues:

The Government Accountability Office urged Congress to consider requiring the disclosure of 401(k) fee information in a way that would allow investors to compare plan options. The report said the Labor Department should require that investors get a summary of all fees paid either from plan assets or by participants.

With the Democrats now controlling the House, prospects are strong for such legislation in the coming months.

Democrats are taking a serious look at how best to handle this issue and make sure hard-working Americans don't run into any surprises down the road when it comes to their retirement savings.