Future Threats That a 401(k) Plan Sponsor Should Be Aware Of


What was good yesterday might not be a good today. Asbestos was a great fireproof building material until it was found to cause asbestosis and malignant mesothelioma Thalidomide was a great drug for morning sickness until it was discovered it caused birth defects. Those tax shelters in the early 1980s saves taxpayers a lot of money before the Tax Reform Act of 1996 killed them with limit on passive activity losses. What was good then isn’t good now and what is good now may not be good tomorrow. As a retirement plan sponsor you have to understand what isn’t good now and you need to be concerned what might not be good later. This article talks about what maybe issues for plan sponsors in the future, as governmental action and litigation may make what is OK today not so good tomorrow.

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