,,, ROLLOVER ! ... "Service providers should not be permitted to provide incomplete information or steer workers to company investment products," the lawmakers said in a letter to the Labor and Treasury departments.
The Investment Company Institute, a trade association for mutual fund companies, insisted that financial company affiliates managing employer retirement plans already offer workers "full information" about their rollover options, including the option to keep assets in a current 401(k) plan.
"The mutual fund industry supports these efforts and clear disclosure of all fees and expenses in connection with any rollover of assets from a 401(k) plan to an IRA," said ICI spokeswoman Rachel McTague.
Rollovers are now the largest source of contributions to IRAs, the GAO report said. More than 90 percent of funds flowing into traditional IRAs between 1996 and 2008 came from rollovers, with the vast majority coming from employer-sponsored retirement plans.
,,, ROLLOVER ! ... "Service providers should not be permitted to provide incomplete information or steer workers to company investment products," the lawmakers said in a letter to the Labor and Treasury departments.
ReplyDeleteThe Investment Company Institute, a trade association for mutual fund companies, insisted that financial company affiliates managing employer retirement plans already offer workers "full information" about their rollover options, including the option to keep assets in a current 401(k) plan.
"The mutual fund industry supports these efforts and clear disclosure of all fees and expenses in connection with any rollover of assets from a 401(k) plan to an IRA," said ICI spokeswoman Rachel McTague.
Rollovers are now the largest source of contributions to IRAs, the GAO report said. More than 90 percent of funds flowing into traditional IRAs between 1996 and 2008 came from rollovers, with the vast majority coming from employer-sponsored retirement plans.