How Retirement Horizons Manages 408(b)(2) Fee Disclosure Regulations



All fees that are deducted directly from a participant’s account during the quarter will be reflected on their statement. This will include such items as fees for loans, distributions, fees for recordkeeping, and any other fees associated with plan administration (i.e. investment advisory, trustee/custody, etc.)
Each year participants must receive information on the costs associated with the investments in the plan. The annual disclosure will contain information including management and investment fees charged by the funds, investment performance, and the cost for each $1,000 invested in the funds. Additionally, the website address where employees can access information about the funds which must be included.
The most common form of annual disclosure delivery will be printed materials which will be mailed. The annual disclosure can be delivered electronically, however, current Department of Labor guidance makes it difficult to use email as a delivery method.
The regulations require that participants begin receiving information within 60 days of July 1, 2012. The annual notice must be distributed to all “eligible” plan participants beginning August 31, 2012.The expanded quarterly statement disclosures are expected to appear beginning in the third quarter of 2012.