Add some investment advice to 401(k) statements — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Add some investment advice to 401(k) statements

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in Human Resources

It’s not a good idea for employees to invest too big a proportion of their retirement dollars in a single stock—even if it’s your organization’s stock. And the IRS says you have to point that risk out to employees four times a year on quarterly plan statements.

The Pension Protection Act of 2006 requires statements—which now must be sent quarterly rather than annually for defined contribution plans like 401(k)s, profit sharing or money purchase plans—to include that bit of investment advice as well as an address for a Labor Department Web site about diversifying investments.

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