408b disclosure on Brokerage accounts

[Jim Chad]

I have several small plans where each Participant has his own brokerage account. Do we have to list the fees to buy and sell stocks and bonds or is just stating that there is a $25 per year fee enough?

[Jim Chad]

Any thoughts anyone?

[Bird]

I'd think "fees for brokerage windows" is not mutually exclusive with "commissions" - i.e. both should be disclosed in advance on some kind of schedule. What you're describing isn't technically a brokerage "window" but I'm not so sure the drafters understood the arrangement you are describing.

(I hope you are not creating the schedule, as the TPA?! I don't think I could be paid enough to do that.)

From the regs:

(3) Individual expenses. (i)(A) On or before the date on which a participant or beneficiary can first direct his or her investments and at least annually

thereafter, an explanation of any fees and expenses that may be charged against the individual account of a participant or beneficiary on an

individual, rather than on a plan-wide, basis (e.g., fees attendant to processing plan loans or qualified domestic relations orders, fees for investment

advice, fees for brokerage windows, commissions, front- or back-end loads or sales charges, redemption fees, transfer fees and similar expenses, and

optional rider charges in annuity contracts) and which are not reflected in the total annual operating expenses of any designated investment alternative.