I’ve spent a lot of time talking about 401(k)s in the last few months. We’ve covered the challenges, upcoming changes, historical development, and potential criminal liability. Still, I know it can be a lot to take in. Here are a few quick facts and stats to help you keep things straight.
401(K) Retirement Expectations
The average 401(k) plan balance of current retirees is $144,000. This means they receive an average of $400 – $500 a month.
The Department of Labor (DOL) estimates 401(k) plan participants incur up to 17 hidden fees for things like marketing, legal, accounting, investments, and insurance.
Fiduciaries or not?
Business owners who are plan sponsors are fiduciaries.
The Department of Labor’s Employee Benefits Security Administration (EBSA) formed the Contributory Plans Criminal Project (CPCP) in 2010. The CPCP is designed to, “combat criminal abuse of contributory benefit plans,” says the DOL. As of March 31, 2011, the CPCP obtained 41 indictments with 15 guilty pleas and restored $1,147,304 in assets.
In 2009, the DOL was authorized to hire 1,000 enforcement agents tasked with identifying noncompliant 401(k) plans and plan sponsors. The DOL says 77 percent of all 401(k) plans are out of compliance.
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