Dallas 401k lawyers help clients resolve 401k problems in Dallas, Texas and surrounding areas. 401k plans are among the most common retirement plans in Texas. When employers violate laws governing 401k plans they mess with the employee’s retirement savings. That in turn can affect the employee’s career, retirement plans and even affect divorce proceedings.
ERISA and 401k plans in Dallas, Texas
401k plans are defined contribution plans governed by federal law. The Employee Retirement Income Security Act of 1974 is that federal law. ERISA sets out duties for 401k plan administrators that require them to act as fiduciaries to the plan and to establish uniform plan rules. Employers who fail to follow the plan rules can be liable to employees for losses attributed to those breaches.
Common 401k problems in Dallas, Texas
401k plans are expensive to manage and involve a lot of money. There is a lot of opportunity and reason for employers to try to cut corners. ERISA compliance is expensive and involves a large, complex regulatory system. However, if an employer offers a 401k plan it must comply with the legal duties under ERISA. Some common ways employers violate ERISA:
- Select 401k investments that provide kickbacks to the plan administrator
- Select 401k investments that are imprudent for the participants
- Self-dealing in buying assets for the plan that benefits the employer
- Failing to make company match contributions as required under the plan rules
- Deducting deferrals from employee paychecks but not depositing the money in the plan trust
- Not timely depositing deferrals to the plan trust
- Failing to maintain required 401k plan records
- Administering the plan without uniformity
- Stealing money from the 401k plan trust
If your employer violates ERISA or its plan rules then it may be liable to you for losses attributed to its bad acts. Contact Dallas 401k lawyers to discuss your remedies.
Remedies for 401k rules and ERISA violations
Dallas 401k lawyers help clients obtain remedies for 401k plan and ERISA violations. Remedies available depend upon the employer’s bad acts. Remedies range from working out the conflict with the employer to filing suit and recovering on a judgment. These remedies for a 401k include recovering financial losses, punitive damages, attorney’s fees and court costs. 401k plans require employees to follow an administrative process before filing a lawsuit. The administrative process creates an opportunity to resolve conflicts before filing a lawsuit. This can be a quick and easy solution to complicated problems. However, if the employer fails to cure its bad acts then it may be necessary to move forward to a lawsuit.