Section 404a-5 Rules for Participant Disclosures of Plan Fee and Investment Information

Summary

This practice note summarizes the participant disclosure requirements under the Employee Retirement Income Security Act (ERISA) that plan administrators must provide to participants and beneficiaries of applicable plans in discharging their fiduciary duties under ERISA § 404(a)(1)(A) and (B) (29 U.S.C. § 1104(a)(1)(A) and (B)). Set forth in 29 C.F.R. § 2550.404a-5 (Section 404a-5) and effective since 2011, the purpose of these disclosures is to provide transparency and allow participants and beneficiaries in participant-directed individual account plans to make informed financial choices, after considering plan fees and expenses, historical investment returns, and certain other information.