The Government Accountability Office—GAO—has recently published a report on fees and expenses. The report encourages both Congress and the DOL to provide additional guidance to help fiduciaries understand and evaluate the fees and expenses of 401(k) plans. The report is entitled “Changes Needed to Provide 401(k) Plan Participants and the Department of Labor Better Information on Fees.”
Recommendations in the report included:
“... Congress should consider amending ERISA to explicitly require 401(k) service providers to disclose to plan sponsors the compensation they receive from other service providers. Finally, to better enable Labor to effectively oversee 401(k) plan fees, we are recommending that the Secretary of Labor require plan sponsors to report a summary of all fees that are paid out of plan assets or by participants.”
During the process of their investigation, the GAO interviewed a number of industry leaders, including Fred Reish.
A copy of the report can be obtained at the GAO’s website at www.gao.gov/new.items/d0721.pdf.
We recommend that you obtain a copy of the report and review it. In addition to being interesting reading, we believe that it is also a window to the future.
Disclaimer Required by IRS Rules of Practice:
Any discussion of tax matters contained herein is not intended or written to be used, and cannot be used, for the purpose of avoiding any penalties that may be imposed under Federal tax laws.