Q: Our 401(k) plan is relatively small. Do we need to be concerned about fiduciary issues and lawsuits? It seems like there are bigger fish to fry!

Erick Arndt Valley 200 Advisor

A: If your plan does not hold much money in assets, you are correct that ERISA enforcement agencies have bigger fish to fry. However, that does not mean you won’t find yourself in the frying pan. All it may take is one participant complaint — or even none in the event of random chance — and you could find yourself subject to a plan review by the Department of Labor’s Employee Benefits Security Administration (EBSA). That’s when the fun begins.

According to the EBSA fact sheet for 20182, the DOL recovered $1.1 billion from enforcement actions against plans last year. Another $443.2 million was recovered through information complaint resolutions.

  • EBSA closed over 1,300 civil investigations, about two-thirds of which resulted in some kind of corrective action, such as monetary recovery.
  • The agency closed 268 criminal cases in 2018 as well, including indictments against 142 individuals.
  • Eighty-seven of those corporate officers, plan officials, and service providers were convicted or pled guilty.

The takeaway here is that NOW is the time to make sure you are dotting the I’s and crossing the T’s when it comes to your plan. Talk to your plan attorney or advisor to measure how you’re handling your compliance matters and what you could do to improve.


Request a meeting with Erick

Want to know more? Speak to Erick, a 401(k) Advisor

Let's meet to review your workplace retirement plan.
Request a meeting with Erick


For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.

Kmotion, Inc., 412 Beavercreek Road, Suite 611, Oregon City, OR 97045; www.kmotion.com

© 2019 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this publication are for general information only and are not intended to provide tax or legal advice or recommendations for any particular situation or type of retirement plan. Nothing in this publication should be construed as legal or tax guidance; nor as the sole authority on any regulation, law or ruling as it applies to a specific plan or situation. Plan sponsors should consult the plan’s legal counsel or tax advisor for advice regarding plan-specific issues.

Tracking #1-857322