Bloomberg Law reports that class action lawsuits concerning 401k fees have seen a five-fold increase in the past 12 months! The word is getting out that 401k fees skimmed from employees’ retirement savings are starting to bite, and financial advisors pocketing these fees feel the heat. We think this is a good thing, and just like the lawsuit the government is filing against Facebook for being a monopoly is long overdue.
Suppose your 401k retirement savings have lost value due to 401k fees skimmed from your 401k assets. In that case, you’re entitled to sue an employer and employer’s financial advisor who pocketed these fees, which in most cases were skimmed without your knowledge.
What 401k fees are we talking about?
- Revenue sharing payments provide compensation to employers and plan managers in the form of free services or other inducements or kickbacks.
- Selecting actively managed load mutual funds that pay commissions to advisors
- The utilization of retail mutual fund share classes
- The use of bundled 401k service providers in a partnership or owned by with financial advisor firms