The fees paid by 401(k) plan participants are falling and their investment fund menus are growing. But participants still may not understand the costs they’re paying for their retirement savings, a watchdog said.
Labor Department regulations requiring greater disclosure have left an impact that is murky at best on the 401(k) savers’ grasp of their plan and fund fees and the shortcomings of the documents that are supposed to inform them, their financial advisors and the agency overseeing the marketplace, according to a report released last month by the U.S. Government Accountability Office. The independent agency reports to Congress, which is awaiting two reports from Labor on fee disclosures due next December under the Secure 2.0 Act.
