More 401(k) Plan Fee Disclosures: What To Do By August 30

For many years, critics of the current 401(k) fee system have claimed that high fees were hidden and not clearly disclosed by vendors. Plaintiffs in class action litigation have seized on this murky area and have been challenging plan fees paid by participants. In fact, studies have shown that a surprising number of plan sponsors and participants are under the misconception that they pay no fees for participating in 401(k) plans, but even those sponsors who desire to better understand the costs of running a 401(k) plan found it difficult since the applicable fees are paid to multiple service providers on a varied basis. Because often sunlight is the best disinfectant, the U.S. Department of Labor (DOL) responded to these concerns by issuing regulations requiring mandatory disclosure of direct and indirect fees by vendors to the fiduciaries who hire them and by plan administrators to plan participants.  Rather than regulating the type or level of fees, the DOL is