What Makes A 401(k) Plan A Target For Litigation

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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I’ve always been a big fan of 1970’s cinema and one forgotten classic is The Sting, starring Paul Newman, Robert Redford, and Robert Shaw. The title to the movie refers to the exact moment when the con artist finishes the "play" and takes the mark's money. Of course, any con requires a mark and a mark is that gullible person, “the sucker” for the con. When it comes to 401(k) plans, there are certain plan sponsors that are going to be the “mark” to get sued over their 401(k) plan. I’m not suggesting that 401(k) litigation is an actual con, but a plan sponsor who makes mistakes and ignores the plan is certainly a gullible person. This article lets 401(k) plan sponsors know what they can do to avoid being a mark or target for litigation.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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