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The New 401(k) Landscape: How Plan Sponsors Can Adapt
- Article from:
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The CPA Journal
- Article date:
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September 1, 2008
- Author:
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Copyright informationCopyright New York State Society of Certified Public Accountants Sep 2008. Provided by ProQuest LLC. (Hide copyright information)
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A recent U.S. Supreme Court case held that an individual may sue defined contribution plan sponsors for any breach of fiduciary duty. This ruling could go a long way toward clearing up the 401(k) landscape.
While the facts of LaRue v. DeWolff, Boberg & Associates, Inc., et al. [450 F.3d 570 (4th Cir.2006)] revolved around a simple administrative error, the court went far beyond administrative procedures in its ruling. It specifically cited section 409 of the Employee Retirement Income security Act (ERISA), which states the following:
Any person who is a fiduciary with respect to a plan who breaches any of the responsibilities, obligations, or duties imposed upon fiduciaries by this ...