Employers and Advisors May Be Required to Offer the Best Options for Retirement
Your employer may be in violation of the new law for retirement plans. Employers that have retirement plans may be required to offer the best options available to their employees. If you are an employee with a 401(k), you may be losing money. Please contact us using the form on this page or by calling us at 817-455-6822. You may be part of a class action.
• Do you think your retirement plan is too expensive?
• Are you unsure whether your retirement plan is too expensive?
• Do you have other questions about your existing retirement plan?
If the answer to any of these questions is Yes, then please contact The Class Action News.
The new rule may employers to make sure employees have the best retirement plan options available. There may be thousands of retirement plans that are in violation of the law. Many people are stuck in an expensive retirement plan even though there are cheaper plans available. Employees are losing money because employers are not informing them of cheaper alternatives.
What is a 401(k)?
A 401(k) is a retirement savings plan that is sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Employees can control how their money is invested so long as they are aware of their options. Employers usually hire a manager to handle the investments, but the manager may not be giving you all the information you need.
401(k) plans are becoming more common. According to the Investment Company Institute, 53 million people held about $4.5 trillion in 401(k) accounts as of September 30.
ERISA, or the Employee Retirement Income Security Act, is a federal law that sets rules for retirement plans in the private industry and rules related to tax and employee benefit plans. If an employer provides retirement plans for its employees, then the employer must follow the laws in ERISA.
How This Affects Me
In a recent lawsuit, the court decided that employers have to review retirement plan investments more often. Employers that provide retirement plans to their employees now have to follow a stricter law. Thanks to the new ruling, employers must take greater care with your investment and inform you of cheaper investment options.
The new rule may require employers to make sure employees have the best retirement plan options available. Employers may be required to inform you of the cheaper investment alternatives, so you can decide how to spend your money.
If you are an employee with a retirement plan, please contact us using the form on this page or by calling us at 817-455-6822.