Is Your 401(k) Plan Ripping You Off?

This is an update of Terry's Feb. 17 column, with information about a new Supreme Court ruling added at the top.

The Supreme Court made it official in a decision released this week: Employers are not only responsible but can be sued if they fail to live up to their fiduciary responsibilities in offering 40l(k) retirement plans. Specifically, individuals can sue if employers fail to provide prudent investment opportunities, or if employers set up plans with fees that are not "reasonable."

In effect, in ruling on LaRue vs DeWolff, the Supreme Court has invited employees -- and lawyers -- to examine the costs of retirement plans. That includes the hidden costs that are buried deeply in plan documents. Those costs can make a huge difference in your ability to reach your retirement dreams, even if you save regularly in your company's plan.

Though the specific ruling revolved narrowly around the rights of individuals to sue plan providers, the impact will be huge. Now, it's up to employees to do some digging and ask some questions. ...