Employers Steal From 401(k)’s


Inquiring minds are pouring over an article on MarketWatch.com about employers stealing from the 401(k)’s of their employees:

Most of the time, the money you contribute to your 401(k) ends up in your account. But there are times when it doesn’t, as evidenced by a recent flurry of press releases from the U.S. Labor Department’s Employee Benefit Security Administration.

Roughly once a week in July alone, some of the 150 million Americans covered by the more than 700,000 employer-sponsored retirement plans received notice that their hard-earned money ended up in the wrong pocket.

You must be vigilant:

But there are things you can do to protect your retirement savings long before your employers end up in a Labor Department press release for the wrong reason.

“Participants need to monitor their account statements to ensure that their contributions are being timely deposited and invested in the right funds,” said David Wray, the head of the Profit Sharing/401(k) Council of America.

The experts recommend you monitor on a regular basis and leave no stone unturned. “Most firms provide account balance information via a variety of ways,” said Tom Kmak, chief executive officer of Fiduciary Benchmarks.

The entire article is well worth the time it takes to read. In fact, it may be the mostprofitable time you use over the next couple of years if it saves you from embezzlement.

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