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SALT LAKE CITY &$8212; By the end of this month, new rules are going into effect concerning your 401k plan. Local analysts say the changes are very good, but, a lot of people may be surprised by what they see.
The new rules concerning 401k plans have been in the works for years.
"It's been on the back burner until just now. We're really excited that [they're] here I think it will be great for all the participants," said Corby Dall with 401k Advisors Intermountain.
He says the new rules do not affect how much someone can pay into their 401k plan, or how much their employers will add. Dall says the new federal regulations will make it easier for people to see what they're paying in a dollar amount, not just a percentage rate.
"[Employers] have to provide a document to the participant, to be received by August 30th, that's an annual statement about the investment options that include both performance and fees."
But, these fees may come a surprise to a lot of people. He says a large number of people assume they're adding to their 401k, the company matches the employee's contribution, and that's that.
"This could be the first time, for many participants, that they realize they're being charged a fee."
Last year, an AARP survey showed 71 percent of 401k participants thought they weren't paying anything for the costs of maintaining the plan. But, with the new regulations, Dall says an employee will be better able to look at other 401k investment vehicles to see if they're getting the best deal for their money.
"They certainly have the ability to go to the HR department or the owner of the company and request that they look deeper into the expenses so that they can have a more favorable plan," he said.
