Pub. 1 2011 Issue 3

13 • Fees and expenses. For most investments, fiduciaries must declare any withdrawal penalties or restrictions for each option as well as provide each option’s total operating expenses/ expense ratio. In addition, for the first time, investments expenses must be expressed as percentages and dollar amounts so that participants have a better understanding of the total estimated costs of investment options. • Performance data. Information about the rates of returns for the various investments must be disclosed. For investments such as mutual funds, this would include the average annual return for investments for one-, five-, and 10-year periods. Other investments must disclose annual rate and terms of the investment. • Benchmarks applied to each investment option. This must be a broad based index showing one-, five-, and 10-year performance time frames for investments that don’t have a fixed rate of return. • Internet website. Participants must be provided with the website address where they can access additional information about specific investments. Most of the investment-related items must be presented in a comparative chart format and include a glossary of terms explain- ing investment terms. Both the plan-related and investment-related information have requirements regarding when and how frequently information is provided to participants. We suggest holding an employee meet- ing or distributing written communication regarding the changes prior to distributing the disclosures; this way, participants won’t be surprised by the amount of data they receive. Please note that disclosures must be sent to every eligible participant—not just those currently participating. Failure to comply with these new regulations may result in significant penalties. Start Now These requirements are an obligation for certain ERISA fidu- ciaries—not an option. Although they may seem daunting, the end goal is admirable: providing greater plan fee transparency and affording participants the necessary information to make better decisions for their futures. Q Disclosures: “This article is reprinted with permission from Plante & Moran’s Universal Advisor. Data and current tax information are provided by the sources believed to be reliable. Any analysis nonfactual in nature constitutes only current opinions, which are subject to change. Plante & Moran PLLC provides this update to convey general information and not for the purposes of providing speci fi c legal, tax, or retirement plan administration advice. Use of the strategies or techniques mentioned herein may not be appropriate for you. You should consult your personal tax or legal advisor regarding your situation.” For a complimentary retirement plan fee review, or for more information about these impending requirements, please contact James M. Eagan CPA, Partner and Automotive Consultant, Plante & Moran PLLC, at 847.628.8865 / jim.eagan@plantemoran.comor Susan Shoemaker, Partner, Plante &Moran Financial Advisors, at 248.223.3722 / susan.shoemaker@plantemoran.com . ZookMotor’s new location:25WillowRunDrive,Kane,PA 16735 ZookMotor’s original location: 22 FieldStreet,Kane,PA 16735 Wouldn’t you like to realize the same benefits? Come see why more and more dealers are switching to AutoSoft. Contact us today for a hassle-free demo at 1-888-888-1180, or visit us at www.autosoft-asi.com .