Labor Department Cracks Down on Employer 401(k) Issues

Most fiduciaries and employers want to do the right thing but, as Labor notes, inadvertent mistakes can create "significant problems."

The press release headlines are sobering: “U.S. Labor Department files suit to remove trustees,” “Department of Labor files suit to recover unpaid contributions to 401(k) plan,” and “Judge orders trustees to restore losses.”

The Department of Labor website is overflowing with cases of regulators taking action against employers accused of mishandling employee benefit plans.

Common pitfalls

So what are the areas the DOL tends to investigate? The experts interviewed for this story agreed that there are several areas where problems may trigger a DOL investigation of employers.

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Originally published on BenefitsPro. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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