Senate removes 401(k) fee disclosure from tax/jobs bill
The Senate version of the American Jobs and Closing Tax Loopholes Act of 2010 has removed a provision that would have required better fee disclosure from 401(k) and 403(b) plans. The provision's main champion, Rep. George Miller of California, said in a statement:
“It is unacceptable for the Senate eliminate this key consumer protection for the 50 million Americans who have 401(k) plans. We are going to continue to fight to put back these key reforms in this bill,” said Miller. “Once again, this just shows how the heavy hand of Wall Street trumps the concerns of hardworking Americans. At a time when America’s middle class has already lost their retirement savings because of the financial scandals, they shouldn’t also be losing out because of excessive or hidden fees.”
In the news release, Miller (whom I interviewed in December of 2008) put the blame squarely on the shoulders of fellow Democrat Max Baucus, of Montana. This is a darn shame.
The truth is, most employer-sponsored retirement plans are too expensive, but most participants don't know it. Here's an article from my colleague Dayana Yochim on how to petition your boss for a better plan.
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