Fort Worth 401k lawyers represent clients in Fort Worth, Dallas and other parts of Texas in claims against 401k plans. 401k plans are defined contribution retirement plans offered by many employers as part of the employee’s compensation. 401k plans hold huge sums of money and require regulated recordkeeping and administration which create opportunities for negligent and fraudulent mismanagement of the plan. If you believe your employer improperly mismanaged your 401k plan you should talk to a Fort Worth employment lawyer right away about your concerns. 401k plans require a specific procedure to complain about a plan deficiency. Failing to follow through on that process may limit or destroy a valid claim against the plan.
Common 401k plan problems in Fort Worth, Texas
401k plans are one of the most common retirement savings vehicles in this country but most people do not understand the complexity behind their operation. 401k plans must meet investment and recordkeeping requirements under ERISA, the Employee Retirement Income Security Act of 1974, designed to safeguard employee savings. These regulatory provisions are expensive for plan sponsors like employers which creates incentives to try to cut corners and rob the plan.
Here are some common ways employer mismanage 401k plans that violate ERISA:
- Hire 401k service providers under contracts that favor the employer over the plan and its particpants
- Select investment options on the basis of how they reduce plan costs to the employer over their prudence for employees
- Failing to retain required records
- Unlawfully delaying payments from participants for deferrals and loan payments
- Robbing the plan trust of funds
- Deducting deferrals from employee paychecks but not depositing funds to the plan trust
Employers who mismanage the plan or steal funds from it can rob employees of their retirement savings, setting them back years or even decades financially. Congress passed ERISA specifically to prevent this terrible situation. If your employer steals from the plan or mismanages the plan in violation of ERISA then you should act quickly to protect your rights and your savings.
Remedies for 401k plan violations
Fort Worth 401k lawyers help clients recover from 401k plans and employers for negligent and fraudulent mismanagement. Participants may have claims for funds restoration, administrative penalties, disgorgement of stolen funds, attorneys fees and other damages. ERISA claims are some of the most complicated in federal or Texas employment law. Many require a specific process to preserve and pursue the claim. Failing to follow this process can significantly limit your opportunity to protect your retirement savings. For this reason you should contact a Fort Worth 401k lawyer about a potential claim.