Time to take a new step to ensure employees remain retirement ready, courtesy of a new federal 401(k) disclosure rule.
And to help, the Department of Labor (DOL) just released new FAQs that spell out the timing of its execution, effective Sept. 18.
2 new disclosures
Under the new 401(k) disclosure rule, your company has two new things to provide employees with annually. Participants should receive an estimate of the monthly amount their 401(k) balance would pay out as both a:
- life annuity, and
- qualified joint and 100% survivor annuity.
The timetable to comply depends on your type of retirement plan:
- For participant-directed plans, you’ll need to provide these by the second quarter of 2022.
- For non-participant-directed plans, you’ll need to do it in calendar year 2021.
Open enrollment is almost here and staffers will be plenty busy with that. So give them a heads up on this new disclosure requirement so they don’t get caught by surprise.