Tips for Preparing for 408(b)(2)

From Tips for Preparing for 408(b)(2) originally posted in PlanAdvisor:

The requirement for the 404a-5 disclosure of fees from plan fiduciaries to plan participants will shift the burden onto the service provider.

According to the DoL documents, this includes, “information or data about the designated investment alternative that is within the control of, or reasonably available to the covered service provider and that is required for the covered plan administrator to comply with the disclosure obligations described in 29 CFR 2550.404a-5(d)(1).”  The document adds that 404a-5 information “must be disclosed as soon as practicable, but not later than the date the investment alternative is designed by the covered plan.”

See full article for tips on disclosure of fees.

About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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