Fiduciary Photo Illustration
While there has been a surge in 401(k) lawsuits against companies for Employee Retirement Income Security Act (ERISA) violations, the majority of retirement plans could be in danger of getting sued, since 84% have at least one likely ERISA “red flag” from a regulatory and/or fiduciary violation, according to Abernathy Daley 401k Consultants.
These findings from the consultancy in 401(k) plan administration and employee education firm indicate that over 600,000 American companies could be at potential risk of fines, legal penalties, and fiduciary failure.
Abernathy-Daley analyzed the latest Form 5500 filings for 764,729 plans, identifying and tagging each plan with any red flags from their most recent filing. Abernathy-Daley defines red flag violations as either “infractions, fineable offenses, fiduciary failure, or plan malpractice” and are separated into two main categories:
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
