Should 401(k) Brokerage Accounts Be More Regulated?

Many large 401(k) plans include a self-directed brokerage account feature allowing participants to choose among literally thousands of mutual funds, sometimes even individual stocks and bonds, outside of the plan’s core investment options. According to one survey, 61% of large plans of member companies include the feature. Not as many participants actually use them! Participants can enjoy more investment choice as a result, but should there be limits to the fun?

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Related Content

• Investment Policy Statement (Defined Contribution Plan)
  Review your client’s investment policy statement for a 401(k) plan to see that a brokerage link/account is mentioned and is one of the investments participants may choose in a plan that otherwise relies on the exception from fiduciary responsibility provided under 29 C.F.R. § 2550.404c-1.
• ERISA Section 404(c) and QDIA Safe Harbors
  See how ERISA § 404(c)(1) (29 U.S.C. § 1104(c)(1)) provides a general safe harbor from liability for fiduciaries of compliant defined contribution plans. 

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  • ERISA. DOL and PBGC released inflation-adjusted civil monetary penalties for ERISA violations. DOL, 87 Fed. Reg. 2,328 (Jan. 14, 2022); PBGC: 87 Fed. Reg. 2,340 (Jan. 14, 2022).
  • Retirement Plans. IRS has issued its annual qualified plan determination letter Revenue Procedure. Proc. 2022-4.
  • IRS raised the standard mileage rates to use in computing the deductible costs of operating an automobile for business, charitable, medical, or moving purposes, to 58.5 cents per mile in 2022 for business use, up from 56.0 cents per mile for business use in 2021.R.S. Notice 2022-03.
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  • Health Plans Face New Liabilities for Inaccurate Provider Directories
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  • States Seek to Rein in Rx Costs and Pharmacy Benefit Managers
  • HHS Adjusts 2021 HIPAA, Certain ACA and MSP Monetary Penalties
  • SEC Proposes to Increase Reporting of Proxy Votes and Executive Compensation Votes

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