In these uncertain economic times, workers have witnessed wild gyrations in their 401k accounts. A downturn in your 401k may be the result of the overall stock market decline, but something else also may be at play.
Employers who offer 401k plans use plan fiduciaries – trusted financial experts – to invest employee funds. However, these experts sometimes fail in their fiduciary duty, in violation of the Employee Retirement Income Security Act (ERISA).
ERISA requires the 401k plan fiduciaries to objectively and adequately review the plan’s investment portfolio with due care to ensure that each investment option was prudent in terms of cost, among other factors. In other words: Your employer needs to pick financial experts to manage the 401k plan who are looking out for the investor-employees’ best interests. ERISA violations may include the failure of the plan manager to minimize costs to the employee-investors by investing in more expensive funds when less expensive, comparable plans offering similar returns are available.
In these difficult economic times, finding out that you are paying for a “Cadillac” plan when a “Toyota” will provide comparable risks and returns at significantly less cost, is another hit to your wallet. Take a moment to review those 401k statements, with particular attention to the fees and costs. If you have questions, contact The Shavitz Law Group. You can call us at 800-616-4800, and we would be happy to assist you in a free consultation to discuss your employment concerns
YOU EARNED IT, NOW LETS GO GET IT.
Gregg Shavitz, Shavitz Law Group, 951 Yamato Rd Ste 285, Boca Raton, FL and 800 3rd Ave, Suite 2800, New York, NY. Lawyers licensed in states including FL, NY, NJ, and TX. The choice of a lawyer is an important decision and should not be based on advertisements alone.