Labor Department Issues New Rules on 401(k) Fees
More than 10 different types of fees and expenses can be charged against a 401(k) account for services such as record-keeping and administration, according to the Associated Press. Many account holders don't realize the fees exist, as they are often taken out of the accounts' investment gains.
New rules from the Department of Labor mean any service provider paid more than $1,000 in connection with retirement accounts must give detailed reports on fees. The new regulations may affect major providers and administrators of 401(k) plans such as Fidelity Investments and The Vanguard Group.
The department is due to publish the interim rules in The Federal Register Friday, and will take comments until Aug. 30.