LOS ANGELES (AP) — The Obama administration is taking steps to make the fees charged in 401(k) plans more transparent and broaden the options retirees have for drawing on their nest egg.
The U.S. Treasury Department and Department of Labor each set forth new rules or proposed regulations that apply to 401(k) plans on Thursday.
Labor’s rule requires certain firms that run 401(k) and pension plans to disclose investment fees and other costs to employers.
Treasury’s proposed regulations would make it easier for people with 401(k) plans to receive a portion of their funds as an annuity. That’s a plan that pays out regularly over a lifetime.
Treasury also issued rules aimed at streamlining the process for employees to transfer 401(k) funds to defined benefit plans.