404(a)(5) and 408(b)(2)

Our experienced retirement plan advisors can help educate you on the 404(a)(5) and 408(b)(2) regulations, identify covered service providers, gather required information, assist with benchmarking, prepare you for inquiries and offer guidance on managing your risk.

ERISA Section 404(a)(5) - Participant-Level Disclosure Regulation

As of 2012, participants and beneficiaries in participant-directed individual account plans must be provided with detailed quarterly disclosures (within 45 days of the end of the quarter) to help them understand plan fees and make informed decisions.


Even now, many participants are just becoming aware of how much they have been paying in fees. There is much speculation regarding how participants will react to this news. According to an AARP survey, 70 percent of participants believe their 401(k) plans are being managed for free, and two-thirds of the remaining participants believe their plan sponsors pay plan expenses.*

The number one trigger for Department of Labor investigations is phone calls from disgruntled participants. A plan benchmark or RFP can assist with any potential accusations from participants or if the DOL comes knocking at your door.

It's always important that participants are happy and it’s your fiduciary duty to ensure that fees are reasonable. We can help.

ERISA Section 408(b)(2) - Provider Disclosures to Plan Sponsors

Beginning April 1, 2012, covered service providers are required to make certain disclosures to fiduciaries of covered plans. Only retirement plans subject to ERISA are covered by the disclosure requirements. These include defined benefit, profit sharing, 401(k) and some 403(b) plans, but not IRAs, Simple IRAs, SEPs, or 403(b)s that are not covered by ERISA.

*AARP 401(k) Participants' Awareness and Understanding of Fees, February 2011