DOL Issues Long-Anticipated Final Rule on 408(b)(2) Disclosure

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

The Labor Department's Employee Benefits Security Administration releases long-awaited final regulations on ERISA Section 408(b)(2) that establish specific disclosure obligations for plan service providers. “The common-sense rule that we are finalizing today will shed light on the true costs of [Section] 401(k) accounts and ultimately reward those working hard and saving for retirement,” Labor Secretary Solis says in a statement. “This rule, and its companion participant-level fee disclosure rule, will greatly increase the level of transparency in retirement plans. When businesses that sponsor retirement plans, and the workers who participate in those plans, get better information on associated fees and expenses, they'll be able to shop around and make informed decisions that will lead to cost savings and a larger nest egg at retirement.”