DOL guidance on brokerage windows adds clarity

As mentioned in a previous blog post, the Department of Labor issued a set of frequently asked questions (“FAQs”) in May, 2012 that were intended to clarify certain aspects of the final regulations concerning participant level disclosure requirements for 401(k) plans. Significantly, one of the FAQs concerned self-directed brokerage accounts that are made available to participants under a retirement plan. 

To briefly summarize, this FAQ, referred to as “FAQ 30,” was intended to clarify that, despite widespread belief to the contrary, fees related to self-directed brokerage options under a retirement plan were disclosable under the participant disclosure rules.