- June 26, 2012 - ROYAL OAK, Mich. --
Hoover and Associates
Financial Services, Inc.
909 North Main Street
Royal Oak, MI 48067
Hoover and Associates Financial Services, Inc. has updated their main website (hooverassociates.com)
to include a new tab containing 401(k) information. Hoover and Associates is dedicated to making customers’ 401(k) plans work efficiently and meet customers’ needs and goals. This new tab explains how they base their service on four components of plan management – plan review, fiduciary support, investment evaluation, and participant education and communication. This tab also briefly covers law changes in regards to 401(k) plans.
The Department of Labor (DOL) has issued their “final service provider fee disclosure regulation” better known as the “408(b)(2)
Regulation”. This regulation requires service providers to disclose, in writing, their services, fiduciary status, and total compensation received in regards to qualified retirement plans (401(k), 403(b), etc.). This new regulation is designed to give plan sponsors a clear view of what fees they are paying and why they are paying them. Under the new regulation, responsible plan fiduciaries have to determine that the fees are “reasonable”
for the services provided. These fees include “direct” compensation—
or money billed directly to plan assets—or “indirect”
compensation, such as 12b-1 and other fees. The regulation is set to take effect July 1, 2012 when service providers must provide plan sponsors a list of services and fees. In 2011, AARP published their survey on 401(k) fees and the results were astounding—71%
of respondents believed that they paid no fees on their 401(k) while less than a quarter (23%) actually knew they were paying fees. In order to create greater fee transparency, the DOL issued its second new regulation, 404(a)(5). The information provided is designed to allow broad based participant knowledge about all plan information such as plan set up, fees, and performance. This information can be broken down into four categories: general plan-related information, plan administrative expenses & fees, participant specific expenses & fees, and investment related information. Plan administrators, with the help of plan record keepers, are required to deliver this information to plan participants by August 30, 2012.
Hoover said, “We are committed to the 401(k) market and support plan sponsors to assist them in managing their plans. We believe this new tab will be a clear source of information in this watershed year for regulatory actions.” Hoover and Associates Financial Services, Inc. offers investment and retirement services in many popular 401(k) platforms, including Fidelity, Transamerica, Great West, and Guardian.
ABOUT HOOVER AND ASSOCIATES: Hoover and Associates offers complete insurance, financial and employee benefit planning services. We work together to serve our clients' business and personal needs with focused solutions that emphasize convenience, practicality and ingenuity. Since our foundation in 1988, we have believed in partnering with our clients to assist them in preserving and managing their net worth, growth, and development. We prepare our recommendations using information our clients share with us about their goals, objectives, and present resources. Then we overlay Market conditions, Tax Regulatory, and actuarial considerations to uncover the best objective client solutions. Hoover and Associates is located at 909 North Main Street, Royal Oak, Michigan. Visit our website at www.hooverassociates.com for more information.
Hoover was awarded the Lifetime Achievement award from the National Health Underwriters Association in 2010, for 10 consecutive years of professional excellence in the sale of health and disability income insurance and sales management.
Securities offered through Sigma Financial, Corp. Member FINRA/SIPC.