Trader Joe’s sued over their 401(k)

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Two former employees of Trader Joe’s have sued the company alleging breaches of fiduciary duty in the management of the company’s 401(k) plan.

The $1.6 billion plan was targeted over Capital Research, the plan’s recordkeeper and the investment adviser to the American Funds. The recordkeeping fees were based on a percentage of assets and came in at $140 a head and the suit alleges that fees should be closer to $40 a head. Also, the plan was targeted over the use of proprietary American Funds and not for using low-cost index funds.

The lawsuit will show whether there is something bad about Trader Joe’s, other than the parking lot.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

© Ary Rosenbaum - The Rosenbaum Law Firm P.C.

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Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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