Make 401(k) ‘hidden fees’ transparent! DOL's feedback on new SECURE 2.0 reporting rules

Employee Fiduciary, a small business retirement plan advisory, called out the Department of Labor to make fees transparent in 401(k) plans, providing recommendations to improve overall participant fee awareness.

Employee Fiduciary is a provider of 401(k) recordkeeping and Third-Party Administration (TPA) services. They recently submitted a comment letter to the U.S. Department of Labor in response to the Request for Information regarding the SECURE 2.0 Reporting and Disclosure requirements. The letter was written by Employee Fiduciary’s President and CEO, Eric Droblyen, addressing several key areas of concern, the primary focus being the need for enhanced clarity and transparency for 401(k) fees presentation.

“In our letter, we suggested improvements to the annual fee disclosure that participants in participant-directed 401(k) plans must receive before their enrollment date and at least annually thereafter,” stated the Employee Fiduciary. “Our suggestions have three basic objectives – increase the transparency of hidden fees, make total fees easier to calculate and compare, and better warn participants about the cumulative effect of fees.”