on Dec 1st, 2006401(k) Plans: Who’s Watching the Costs?
There’s a rule around the house. If you start a project, then you better plan on sticking around until the project is finished. The same might be said for 401(k) retirement plans. If you invest your money in one of these plans, then you better make sure you’re not being taken to the cleaners by administrative fees. Is it any surprise that this is an issue with Republicans still in control.
Federal regulators should boost their oversight of 401(k) retirement plans and adopt reforms to ensure full disclosure of hidden costs that can cut deeply into the savings accrued by millions of American workers, a government report recommended Thursday.
With companies rapidly abandoning traditional pensions, 401(k) plans have become a cornerstone of retirement security for an estimated 47 million people. Yet regulation and oversight haven’t kept pace with the growing importance of these plans, the report by the Government Accountability Office concluded.
Better oversight of 401(k) plans urged
U.S. regulators should require full disclosure of hidden fees that can cut savings, a study says.
By Walter Hamilton, Times Staff Writer
December 1, 2006