You are personally liable7/31/2019
Many business owners and executives fail to realize the personal liability that comes with association and administration of a 401(k) plan. In recent lawsuits, the named defendants include the company, the investment committee and the owner and HR director personally as well as any executives with decision making power over the plan operations. The most common litigation are claims that employees are paying unnecessary fees based on lack
of investment option oversight.
There is a simple solution to mitigate fiduciary liability. Many employers are outsourcing the Fiduciary Services to firms who specialize in Qualified Plan Compliance and Fiduciary Governance. These firms will in most cases provide Financial Indemnity if a plan is found to be negligent in regards to operational or investment processes.