401(K)ase Studies: Sponsor Horror Stories

When the DOL Calls: You Don’t Have to go at it Alone

After leaving a client meeting recently, I noticed several missed calls from one of our 401(k) plan sponsors. When I returned to my car, I listened to their voicemail messages and immediately understood the urgency. They had just received a call from the Department of Labor (DOL).

For most plan sponsors, that’s the call you hope you never get. The DOL typically reaches out only when there’s been a complaint, an audit, or a compliance concern…all of which can understandably cause panic.

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Our client’s HR Manager had never been through this before and wasn’t sure where to begin. She explained that a DOL Case Manager had contacted her requesting a list of documents and information, all under tight deadlines. She was overwhelmed and unsure how to respond correctly…or quickly enough.

I called her back immediately to:

1. Reassure her that everything would be okay. From an administrative and fiduciary standpoint, I knew their plan was properly managed and compliant.

2. Remind her she wasn’t alone. As their retirement plan advisor, our role is to be in her corner…especially when unexpected situations like this arise.

3. To gather more details. I needed to understand the DOL’s inquiry and what prompted the investigation.

After discussing the situation in more detail, I learned that a recently terminated employee had filed a complaint with the DOL regarding their 401(k) account and access to their funds.

We immediately compiled the requested plan information ensuring everything aligned with plan provisions and ERISA requirements. We also provided a response addressing each of the Case Manager’s questions and clarifying the timeline of events. After reviewing the materials we provided, the DOL Case Manager confirmed everything was in order, and the case was promptly closed. 

Even well-managed plans can attract DOL inquiries. Former employees, data errors, or simple misunderstandings can trigger investigations, but you shouldn’t have to go at it alone. With the right support, preparation, and documentation, even the most stressful DOL call can be resolved quickly and confidently.

At Integrated Financial Solutions, we take pride in being more than just your retirement plan consultant, we’re your trusted partner in protecting your employees’ financial future. Our hands-on approach, fiduciary oversight, and deep industry expertise ensure your plan remains compliant, cost-effective, and aligned with your organization’s goals. Let’s schedule a time to review your current plan and explore how we can strengthen your retirement offering while saving you time, money, and stress.