As large-scale layoffs and ERISA lawsuits alleging misuse of forfeited 401(k) money continue to make headlines, plan sponsors are on alert.
Employee termination spiked in March, largely within the federal government, with more than 275,000 jobs cut, according to outplacement firm Challenger, Gray & Christmas. As tariffs and other economic obstacles mount for employers, they too may end up needing to reduce their workforce, and that is not the time they want to figure out the rules surrounding 401(k) forfeitures, let alone explain them to workers.
