This is a guest article from FiPath.
The majority of Americans in many plans have long complained that the 401k information they receive is not only confusing but also incomplete. Many plan participants that have recently changed jobs must decide what to do with their existing 401k accounts, especially those nearing retirement. Additionally, many don’t have enough saved in their 401(k) plans to help cover retirement and they are unsure of where to find solutions to these issues and other questions they may have.
Federal regulations that take effect on April 1, 2012 will require 401k providers to supply more information about plan costs, which may affect consumers’ 401k to IRA conversions. Workers looking forward to a comfortable retirement need to make sure that they are up-to-date on policy changes that may affect their 401k and IRA accounts. Greater fee disclosure and more pressure on employers to pick cost-effective plans will hopefully drive overall 401(k) plan costs down, promote transparency and possibly improve quality.
At a minimum, providers must now:
- Send participants quarterly statements that show detailed expense costs and prior performance data
- Provide a chart for investment comparison purposes
- Be able to show that advice was provided by an unbiased adviser or computer model. (Plan administrators for IRA and 401k accounts are now able to offer advice to participants.)
Become clear on your financial needs - what will I need to retire? How much do I need to save? FiPath is bringing consumers up to date on the new regulations and can provide insight on how consumers can make smart decisions about their 401ks and what the new policies mean for investors.
FiPath is working to help consumers of all types take control of their financial future - with easy-to-use financial tools to connections with local, qualified advisors, as well as a forum for collaboration with peers, so consumers can get a broad variety of opinions and make the best decision for themselves. Visit FiPath to learn more about new Transparent, Consumer Friendly, 401(k) Plan Rules and Regulations.