DOL issues warning signs to aid against 401(k) fraud.(Department of Labor, 401 (k) salary reduction savings plans)

National Underwriter Life & Health-Financial Services Edition, January, 1996 by Fisher, Mary Jane

The Department of Labor (DOL) has issued a report delineating 10 warning signs that signal that employers are misusing employees' 401(k) salary reduction savings plans plan contributions. The 10 warning signs include: 401(k) statements are consistently late; statement balances do not appear to be accurate; and contributions were withheld for more than 90 days. The DOL currently is investigating over 300 employers for potential violations of criminal and civil law in their management of their employees' 401 (k) plans.

WASHINGTON--As part of a nationwide campaign against pension fraud, the Labor Department has issued 10 warning signs workers can use to protect their 401(k) plan contributions from employers who may misuse the money. More than 3 00 companies are currently...

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