A recent press release issued by Pension Dynamics Corporation, a retirement-plan consulting firm headquartered in the San Francisco Bay Area, reminds us that 401(k) details will become more transparent, giving participants more information about their plans.
According to the press release, while the new details won’t be released this year, by 2011, employees should know more about their 401(k) plans.
401(k) Details Have Always Been Hidden
It has been a common practice of investment firms to hide details about hidden fees for all types of investments, including 401(k) plans. However, the government has decided that in order to properly plan for retirement, investors need to know what’s going on with their money.
To make this adjustment, the government is requiring that information about hidden fees charged for the 2009 year-end be disclosed to participants. In 2011, these details will have to be shared with employees.
The idea behind sharing is to make sure that 401(k) participants are enlightened about the details of their accounts. Even more, they can monitor their financial conditions and help them better plan for retirement.
Tips Businesses Need for 401(k) Success
The president of Pension Dynamics Corporation, Steve Butler, has offered a few tips for business owners that he believes could help make the most of your 401(k) plans. They could:
- Learn to negotiate lower fees to help make the most of your investing dollars
- Invest in pure no-load mutual funds to potentially generate improved results
- Redesign your plan so that you allow for contributions as high as $54,500 per year for some employees
- Reduce online-only help and receive some face-to-face advice to help better understand plans
Butler believes that if businesses are able to make these adjustments, they will find more success with your 401(k) plan.
What do you believe could help to improve your 401(k) investment opportunities?
