Compliance November 28, 2011
DoL Sues Defunct Company for Failing to Terminate 401(k)
The U.S. Department of Labor is suing Worldwide Trade Resources Inc. (WTR) for failing to distribute $2 million held in its 401(k) plan.
Reported by Rebecca Moore
According to The Jersey Journal, WTR is being sued for “for failing to administer and terminate the defunct company’s 401(k) plan, in violation of the Employee Retirement Income Security Act,” the lawsuit says. The suit alleges that WTR ceased operations on or around October 2010, and did not distribute any of participants’ 401(k) accounts.
The news report said as of January 31, the plan had 52 participants and assets totaling $2.2 million, according to the latest data available.
The suit seeks a court order appointing an independent fiduciary to distribute the plan’s assets and terminate it.