These are common signs indicating something could be wrong:
- Your 401(k) or individual account statement is consistently late or comes at irregular intervals.
- Your account balances does not appear to be accurate.
- Your employer failed to transmit your contribution to the plan on a timely basis.
- A significant drop in account transactions that cannot be explained by normal market ups and downs.
- 401(k) or individual account statements are not what you authorized.
- Investments listed on your statement are not what you authorized.
- Former employees are having trouble getting their benefits paid on time or in the correct amount.
- Unusual transactions, such as loans to the employer, corporate officers, or plan trustees.
- Frequent and unexplained changes in investment managers or consultants.
- Your employer has recently experienced severe financial difficulty.
- Your plan administrator does not give or send you a copy of the Summery Plan Description (SPD).
Also
- Investments listed on your statement appear to be too risky.
- Investments involved the administrator, investment advisor, your employer or people or family associated with them.
- Expenses paid seem to be very high. Expenses must be reasonable.
- Generally, investments must be diversified and it must be invested wisely and carefully.
A plan administrator, financial advisor and trustee are each “fiduciaries.” Fiduciaries owe the highest obligation to the plan and its beneficiaries. Fiduciaries must act in the best interests of the plan and its beneficiaries. Reasonable care is not sufficient. Self serving activities or management is not acceptable.