The U.S. Department of Labor’s Employee Benefits Security Administration on Monday proposed disclosures on target-date funds offered in 401(k) plans.

Sponsors would have to disclose the fund’s asset allocation; how that allocation changes over time, with a graphic illustration; the significance of the investment’s target date.; and a statement that the investment has the risk of losing money, even close to retirement.

“Based on our collaborative examination of this issue with the Securities and Exchange Commission, it is clear that all participants in participant-directed individual account plans can benefit from better information about how target-date investments are designed to meet their retirement savings needs,” said Assistant Secretary of Labor for EBSA Phyllis C. Borzi.

DOL is accepting comments on this proposal through Jan. 14 via e-mail to e-ORI@dol.gov, attention TDF Amendments.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access