According to Bloomberg Law, “More than 180 lawsuits challenging 401(k) plan fees have been filed in federal courts since 2020. About 20 of these cases have settled so far with settling employers. Some of those recent suits include excessive record keeping and investment fees, breaching fiduciary duties, and self-dealing, to name a few. In addition, businesses have been levied fines for late/incomplete Form 5500 forms which are required for ERISA 401(k) plans.
Paul Fokken discusses the importance of fiduciary governance and what it means to be a prudent expert. He goes on to explain how employers have options to help reduce company and personal liability. He also comments on ways to reduce employer plan responsibilities thus enabling owners to focus more on the growth of their business rather than worrying about potential lawsuits and fines with their existing 401k) plan.
Listen to the interview on the Business Innovators Radio Network:
Questions covered in this interview include:
- What is the 401(k) environment like today as far as lawsuits and fines?
- What is a 401(k) Multiple Employer Plan or Open MEP?
- Why should employers consider an Open MEP?
Paul explained that: “Employers should consider a Multiple Employer Plan or Open MEP because of the huge benefit of reducing personal and corporate fiduciary responsibilities. If you are not a prudent expert, then you may also be exposed to fines in addition to potential lawsuits.”
About Paul Fokken
Paul Fokken helps employees and employers with a 401(k) by providing every employee the opportunity for PPAM by enrolling in 401(k) Maneuver.
He also helps businesses delegate virtually all their 401(k) plan corporate and personal risk away to other 3rd parties and helps to reduce plan responsibilities.
Learn More: https://www.fokkenfinancial.com
Previous News Stories about Paul Fokken
Maneuvering 401(k) Plans to Optimize Retirement
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