Is your employer profiting from the money you've been saving in your 401(k) plan? Incredibly, the recent class-action lawsuit against Wells Fargo alleges that the company has been doing just that — profiting off of their employees' retirement savings.
To be fair, Wells Fargo isn't the only company that's been accused of this. It's been suspected that many firms in the financial services industry have been self-dealing, while entities in other sectors, including some prominent universities, have been accused of charging their employees excessive fees in order to keep their own costs down.
In theory, an employer offers a 401(k) as a fringe benefit to not only help their employees save for retirement, but also to attract top talent to remain competitive in the marketplace. It would seem reasonable to the average person that workplace benefits are a form of compensation and that some (or all) of the burden of those benefits should fall to the employer. After all, this is what occurs with other benefits, such as health insurance and vision and dental plans.