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Trader Joe’s sued over their 401(k)

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Two former employees of Trader Joe’s have sued the company alleging breaches of fiduciary duty in the management of the company’s 401(k) plan.

 

The $1.6 billion plan was targeted over Capital Research, the plan’s recordkeeper and the investment adviser to the American Funds. The recordkeeping fees were based on a percentage of assets and came in at $140 a head and the suit alleges that fees should be closer to $40 a head. Also, the plan was targeted over the use of proprietary American Funds and not for using low-cost index funds.

 

The lawsuit will show whether there is something bad about Trader Joe’s, other than the parking lot.

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