The Big Loophole in the DOL Fee Disclosure Regulations

Abstract

401(k) fee disclosure has a big loophole in one of the largest asset classes. Stable value, or guaranteed funds, typically constitute 10-40% of assets in most 401(k) plans and have varied and complex structures which complicate fee disclosure. Billions of dollars in what I call spread based fees remain undisclosed under the new US Department of Labor (DOL) fee disclosure rules.

Keywords: 401(k), DOL, Stable Value

JEL Classification: G22, G23, G28