As you Roll Over your 401(k) plan, now is a good time to consider:

Did your previous employer manage your 401(k) properly by offering you the best plans available?

If your previous employer provided limited 401(k) options or charged above-market fees, it could be a violation of federal law.  For instance, it is illegal for employers to offer 401(k) plans that charge excessive fees.

Most participants in 401(k) plans expect that their accounts will be their principal source of income after retirement.  Even though 401(k) accounts are fully funded at all times, that does not prevent plan participants from losing money on poor investment choices by plan sponsors and fiduciaries, whether due to poor performance, high fees, or both.  

Employers have a high standard of care and diligence and must establish a prudent process for selecting investment options and service providers and monitor investment options and service providers once selected to see that they continue to be appropriate choices.  

Prudent and impartial plan are required to be considering both the performance and investment costs.  But this is not enough.  Employers must also continue to investigate alternatives in the marketplace to ensure that well-performing, low-cost investment options are being made available to plan participants.

It’s important to review whether your Employer’s 401(k) offerings that are regulated under federal law. Please contact Javitch Law Office today for a free analysis to see if your 401(k) plan complied with federal law.