Congress is currently in the middle of discussions to increase federal tax revenues and reduce the budget deficit and national debt. Several proposals have been discussed that would drastically alter the benefits of participating in a 401(k) plan – some proposals would reduce the maximum amounts that could be contributed by 70%, and other proposals would change the tax benefits of employee contributions to a flat “credit” or even eliminate the tax deductibility of employee contributions altogether.
Expanding and improving employee education is one way an employer can improve its plan by providing invaluable education services not otherwise available to the average worker.
The new 401(k) fee disclosure rules due to be implemented within the next year are intended to provide a greater degree of transparency to the costs associated with maintaining and operating a 401(k) plan. One of the least transparent of the fees being charged to participants are 12b-1 fees.
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