Computer company on the hook for retirement plan violations
When employees contribute to a company’s 401(k) plan, naturally they expect their contributions to actually go where they’re supposed to.
But according to the DOL, that’s not what happened here.
DS3 Computing Solutions, Inc., and its owner, Davis Sylvester, allegedly failed to forward some workers’ contributions to the company’s 401(k) plan in a timely manner – and others weren’t remitted at all. Both actions violate the Employee Retirement Investment Security Act (ERISA), according to the DOL.
In the end, DS3 and Davis agreed to restore $4,120, which includes all losses and interest, to the plan. They’ve also been barred from serving as fiduciaries or service providers to any ERISA-governed plan in the future – and must pay a penalty to the federal government.
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