True or false: Covered service providers are not required to provide the 408(b)(2) disclosures.

Covered service providers are indeed required to provide the 408(b)(2) disclosures. This requirement stems from the Employee Retirement Income Security Act (ERISA), specifically aimed at ensuring transparency and fairness in fee structures associated with retirement plans, including 401(k) plans. Covered service providers, which are typically those who provide services for a fee to a retirement plan, must disclose various types of information regarding their compensation, potential conflicts of interest, and the services being rendered. This disclosure is crucial for plan fiduciaries, as it helps them in making informed decisions regarding service provider relationships and managing plan costs effectively. By mandating these disclosures, regulations seek to protect plan participants and enhance the accountability of service providers.