401k Excessive Fee Litigation California
Breach of Fiduciary Duty with 401k mismanagement is when the managers of your 401k are not managing the funds ethically and or properly. It is a serious issue that has come to light in recent years. The law for managing these 401k plans and specifically what qualifies as mismanagement is a complex issue but not for our Attorneys at Christina Humphrey Law, P.C. Because each 401k mismanagement case is very different, we recommend that you reach out to us for a Free Consultation so we can give you specifics of your individual case.
The IRS describes a 401K plan as a tax-qualified retirement account that eligible employees can contribute to for their retirement. For the most part, 401k’s are regulated by the Employee Retirement Income Security Act which is known as ERISA. The ERISA regulations state that 401k administrators owe fiduciary duties to plan participants and their beneficiaries. If the administrators of the 401k plan mismanage the plan, they may be Liable for resulting losses.
DO YOU HAVE A 401k MISMANGEMENT CASE?
It is important to know that just because you “think” the administrators are doing a bad job or because your account is not going up in value, doesn’t mean you have a case. In order to have a case you have to Prove that the administrators violated their fiduciary duties under ERISA. Here is what ERISA states are the 401k administrator duties:
- – Act solely in the best participants & beneficiaries;
- – Perform with reasonable prudence & competence;
- – Comply with the foundational documents of the plan;
- – Avoid charging unjustifiably fees and/or expenses.
The 4th item above is the most common type of Mismanagement of your 401k. However, each case and plan is different. If you think your 401k’s value has been damaged by mismanagement, please call us for a Free Consultation with an experienced 401k Claims Lawyer, so we can review your specific case and give you the options.