While index funds already have a place in the lineup of most 401(k) plans, a proposed federal mandate to require at least one index fund option in these plans is intrusive and unnecessary, according to industry experts.

Rep. George Miller (D-Calif.), chairman of the House Education and Labor Committee, wants to reform 401(k) plans by improving fee disclosure. In the interest of lowering 401(k) fees, Miller's proposal requires plan providers to offer investors at least one low-cost index fund.

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