You can’t overestimate the importance of a retirement plan, since your long-term financial security is likely to depend on the money you withdraw from your account after you stop working. Because so much depends on your being able to count on this source of income, it’s wise to keep track of how your plan is managed.
Employers must file annual reports on IRS Form 5500. Your plan administrator must provide a copy of the summary annual report (SAR) if you ask for it, or you can get copies from the US Department of Labor (DOL) for a copying charge.
You also should receive a copy of your summary plan description (SPD), a document that lays out the rules, schedules, and procedures of your 401(k).
Your employer should provide a copy of your individual benefit statement at least once every 12 months, though you may have to request it. You might want to review the document with your financial adviser or ask your plan administrator or human resources department about the details. While some account statements are relatively easy to decipher, others may be more difficult to interpret.
If you’re looking for guidance on the issues you should be concerned with, or the questions to raise, you may want to check the Department of Labor’s What You Should Know About Your Retirement Plan.
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