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As the sponsor of a 401k plan, you have a fiduciary responsibility to timely deposit participant contributions in your plan’s trust or custodial account. Failing to do so is a fiduciary violation, and constitutes a prohibited transaction that subjects you to an excise tax.
On December 21, 2021, the Department of Labor published a Supplemental Statement to its June 3, 2020 Information Letter addressing fiduciary considerations for including private equity within an investment option under an ERISA-covered defined contribution plan.
Consulting firm October Three says lawyers will likely set their sights on MEPs. Multiple employer pension (MEP) plan sponsors should brace themselves as a potential target for litigation as the plans continue to emerge as a provider-based alternative to single-employer 401(k) plans, according to consulting firm October Three. In a recent article, the firm said that as MEPs begin to accumulate participants and assets, it is “inevitable that plaintiffs’ lawyers will train their sights on MEPs as a fiduciary litigation target” with the “the same sort of fiduciary litigation that has aff...