Disclosing Distribution Fees

[austin3515]

Are people sending out distribution paperwork to participants with a notation on the paperwork regarding the fees? We've got "a lot" of plans now, and many recordkeepers negotiate the fee separately for each plan, so it's getting overwhelming to be able to do that.

What are other people doing?

[Belgarath]

We have the fees specifically disclosed in an appendix to the SPD. If they change, we do an SMM. So when it comes to a specific distribution from a plan, an additional disclosure not necessary, although some platforms do have it on distribution paperwork. And, some administrators put it on the form anyway.

Personally, I would not. As far as I'm concerned, if properly disclosed in the SPD/SMM, that satisfies it.

[BG5150]

Is this a daily valued plan? Aren't these fees mentioned in the 404(a) notices?

[austin3515]

We initially did it to avoid the angry phone calls after the fact saying "what the heck is this fee?" knowing of course that no one will ever read a fee disclosure.

But what we are doing now is putting a simple statement - please note fees may apply, and take a look at the fee disclosure.