VIDEO: Examples of 401(k) Service Providers Giving a Potential Participant Guidance Favoring IRAs

America’s workers are often presented with false and misleading information regarding fees and their options on what to do with their 401(k) assets when they leave an employer, according to a Government Accountability Office (GAO) investigation released by Rep. George Miller (D-CA), Sen. Tom Harkin (D-IA), Sen. Bill Nelson (D-FL). Following the release of the report, Miller, Harkin, and Nelson called on the Departments of Labor (DOL) and Treasury to act on GAO’s recommendations, including protecting consumers from deceptive marketing materials disguised as advice, establishing uniform standards and model notices to assist 401(k) accountholders in making better-educated decisions on their retirement savings, ensuring the full disclosure of Individual Retirement Account (IRA) fees, and encouraging people to keep their retirement savings in the 401(k) system. The leaders pledged to work on legislation in Congress to address these goals, if need be.

Watch a video from the GAO demonstrating examples of 401(k) service providers giving a potential participant favoring IRAs: