401(k) Loans Identified as Top Fiduciary Risk

Along with missing participants, unclaimed asset transfers, and cybersecurity, 401(k) Specialist recently identified plan loans as a top fiduciary risk for plan sponsors demanding immediate attention. The article, “4 Fiduciary Threats to 401ks Now,” quotes Drinker Biddle ERISA attorney Bruce Ashton, who recently authored a whitepaper on this ripening fiduciary risk: “What [plan sponsors] may not recognize is that participant loans are plan investments and must be managed with the same prudence and oversight required for any plan investment.”

Read 401(k) Specialist’s article here.