Los Angeles partners Fred Reish and Bruce Ashton have authored a white paper for J.P. Morgan Asset Management. Fred also conducted a related webcast. Click here to view the webcast.


An assumption underlying most 401(k) plans is that participants know how to invest their funds. Based on that assumption, most plan sponsors offer their participants an array of prudently selected mutual funds, provide investment education and conclude that they have fulfilled their responsibilities. Unfortunately, the assumption isn’t correct — as either a matter of fact or a matter of law.

What plan sponsors don’t realize is that they are responsible — and thus potentially liable — for participant investing, even when the plan has delegated that authority to the participants and they have exercised control over the investments.

Click on the PDF link above to view the full white paper.

Source: J.P. Morgan Asset Management
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