The Real And Exaggerated Threats To A 401(k) Plan Sponsor

When I started my practice more than 10 years ago, I would post articles on some of the LinkedIn groups talking about 401(k) plan sponsor liabilities. One person who was not even a retirement plan provider accused me of spreading fear because I talked about issues such as plan costs, revenue sharing, and other fiduciary liability problems, and that was a couple of years before they became big issues. Unlike many other plan providers out there, I don’t exaggerate the liability threats out there because there are several out there that have less of a chance of happening to a small or medium-sized 401(k) plan than a direct lightning strike to someone. This article is all about threats to a plan sponsor, exaggerated and not.