401k Theft
401-k theft federal officials say it's happening at an alarming rate. What can you do to make sure the money taken out of your paycheck each week actually goes where it's supposed to? Call 12 for Action uncovers this very scary scam.
Barry Ruck knew he had trouble on his hands when he tried to check his 401k account online. In fact, his account was frozen. Money had not been deposited for some time. The problem? Contributions were being taken out of Barry's weekly paycheck all along. Barry says more than 3-thousand dollars was stolen. His employer now facing charges for failing to deposit those funds, instead keeping the money for himself.
Two billion dollars in assets are now in 401k plans. So whenever you have that much money, you're going to have people who will take advantage of it. The department of labor recovered 32-million dollars in stolen 401k funds last year. The biggest warning signs to tell if your 401k is in trouble? No movement or a sudden drop in your account balance unrelated to the stock market, statements arriving late, and your employer regularly changing the plan administrator.
Any time you know that your company is facing any financial difficulties, be a little more cautious. Barry ultimately had to get the authorities involved, while he doesn't have his missing money back yet, he's hopeful.
If you think money is missing from your 401k you need to contact the Department of Labor immediately.
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