Over the last 12 months, the U.S. Department of Labor and the Securities and Exchange Commission proposed several rules, regulations and legislation that will soon change retirement planning for all—investment companies, employers and investors. Of all the recently issued regulations, those concerning 401(k) fee disclosures have been the most talked about.

In sum, the DOL issued final regulations that will soon require investment companies to disclose the hidden fees they are charging investors participating in 401(k) plans and other defined contribution plans. This new regulation will require plan providers to report to investors, typically the employees of plan sponsors, the direct and indirect compensation received in connection with account services and take effect July 16.

We’ve heard a lot of talk from politicians and lawyers about how great the new regulations will be to investors and how it’ll help fix the American retirement system. And while the disclosure of 401(k) fees will provide consumers with honest options and the push toward transparency is a wonderful concept, consumers will ultimately pay since unfortunately, they always do. So let’s look at what these regulations mean and what’s at stake for the investor, the plan sponsor and the investment company.

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