Department of Labor 401K Disclosure Form

A friend suggested that I get my 401K advisor to fill out a Department of Labor 401K Disclosure form. Why should I do this?- James Blackman, runs a gym in Downtown Ohio.

Some 401K advisors and brokers charge heavily for their services, resulting in an unnecessarily expensive 401K plan for your small business. The cost of their services is borne by you, the business owner, as well as your employees. Even if you are willing to pay more for your advisor, your employees may not be as willing when there are others offering similar services at much lower rates. At times, you may not be aware of the various charges that your advisor tacks on to your bill. Having him fill out a Department of Labor 401K disclosure form often brings to light the many hidden fees that advisors may charge.

It is not mandatory for your advisor to sign this form but his refusal can mean that he does have something to hide. In this case, you can ask him to give you a detailed break up of the total bill he sends you for your 401K plan. If he does fill out the form, you will see how much of your money is going towards the various fees such as record keeping. Some fees such as surrender charges come into play when you want to change your plan. You can visit the Department of Labor website to download this form or to read more about it.

If you want to set up a new 401K plan for your business and want to keep costs as low as possible then choose a software suite like http://smallbusiness401k.com. These suites let you set up, administer and track these retirement plans with ease so that you can do all of it by yourself by spending just a few minutes each month. The cost is typically quite low and there are also suites to fit different business sizes and budgets.

About Elliot Earl, Director, Pension Trade Association
Director, Pension Trade Association Founded in 1982, the Pension Trade Association [California Domestic Nonprofit Corporation #C1629080] is dedicated to helping workers save for their retirement through expanded coverage of 401k -type defined contribution pension plans.

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