Plan Sponsor Quick Tips: Required Statement Disclosures

Each Monday 401kBasics posts a new tip as a part of our series “Plan Sponsor Quick Tips”. This series is designed to assist plan sponsors in filling their fiduciary role and running their retirement plan efficiently. Your feedback or suggestions on future articles is welcome.

After the close of each quarter, participants receive a copy of their account statement detailing the total vested account balance in their individual account. In addition to the quarterly statement, there needs to be information included regarding investments and diversification. The statement must indicate the following:

  • Details on any limitations or restriction on participant direction
  • Explanations regarding the importance of diversification
  • Direction to the DOL website for further information on investing and diversification

Further information on diversifying and investing is found at this DOL site. Plan sponsors can also direct their participants to the SPD for details on the plan regulations and features.

This site is for entertainment purposes only. 401kBasics and it’s authors are not financial advisors and no information found on this site should be construed as financial advice.

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