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Posted by Elle on December 3, 2007, 11:07 am
>From a New York Times editorial today, plugging a bill under
consideration in the House on the lack of transparency with
401(k) fees:
"Under current law, 401(k) providers, such as mutual fund
families or insurance companies, are not held to any
consistent standard for disclosing fees. As a result,
employers often have insufficient information when they make
decisions about a 401 (k)'s options and services. For
instance, money management firms routinely list
administrative fees, which are generally paid for by
employers, as "zero." But in truth, administrative costs are
generally covered by charging higher investment fees, which
come out of employees' account balances. The bill would
require 401(k) providers to break out all costs.
The House bill would also correct current law, which does
not require that employees be told about fees that reduce
their investment returns. Opponents of the measure, mainly
410(k) providers, argue that more information would be more
confusing."
See article linked now at
http://www.nytimes.com/pages/opinion/index.html ("Better
Savings Plans," Dec. 3 Editorial). Registration at the Times
is free. Over some ten years, I have received no junk mail
in consequence of being registered with the Times.
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