Investors should be made aware of the fees they are paying in their 401(k)s, particularly since they are frequently hidden. That was the message of a Government Accountability Office report that Rep. George Miller (D-Calif.) released Thursday.
To do that, Congress should look into creating a law requiring plan sponsors and administrators to disclose such fees, along with the fees consultants or advisers for recommending certain mutual funds, Miller said. He recommended that the discussions start with hearings at the House Education and the Workforce Committee, of which Miller is the senior Democrat.
The GAO found that 80% of investors in 401(k)s, 403(b)s and 457s don’t know what they are paying in fees.
“Workers need complete, accurate and clear information about the total cost of different investment options so they can choose the ones that are best for them,” Miller said. “They need to know exactly what fees they are paying so they can get the best deal.”