From Cynthia Scott of OMC Financial Services:
New 401k/403b rules went into effect July 1 which help employers and employees make better investment choices
**Many 401k plans have very high fees but these fees are not required to be disclosed to either the employer and the employer
**All sponsors of 401k/403b plans will now have to tell employers the fees associated with their plan. Examples of plan sponsors for 401k/403b plans are Vanguard, American Funds, Fidelity, etc
**Employers were notified of the fees charged on July 1.
**Individuals participates have to be notified by their employer of the fees no later than August 30th but the employee won’t see the amount of the fees for their particular account until their Fall statement
**Most people choose investments in their plans, based upon past performance, but an extra .05 percent in annual fees can affect performance
**Fees are one consideration; but there are other factors that should influence investors’ decisions such as the manager’s experience, the investment sector and how long the fund has been in existence.
