Rule will allow 401(k) owners to look behind the curtain
Filed Under Kitchen Curtain | Posted on August 26, 2008
In late July, the Department of Labor announced a proposal that will require every 401(k) plan to show participants the performance and annual costs of the funds offered in their plan. As millions of 401(k) participants know, that very basic information is often hard to find or nonexistent.
The new regulation will require a simple table showing the 1-, 5- and 10-year annualized performance of funds in a plan and the comparative performance of a benchmark index. In addition to being able to compare performance, you’ll get a table showing the annual expense ratio for the funds. 401(k) participants will finally have easy access to data that will tell them if the funds are any good.
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