Expert: Allen - 12/8/2006

Question
Is an employer required to provide monthly or annual 401k statements to enrolled employees.  My wife has worked for the same company for over 10 years.  She has contributed to a 401k plan for the term of her employment, but has never received a statement of her account.  She has no idea how much she has invested or what the value of her account is.  When she pressed her employer last year for a statement, her showed her a 3 year old statement of her account.  It just doesn't sound right to me.  Who would I contact to enforce compliance?

Answer
Currently, an employer does not have to automatically provide statements. However, it must provide upon request. Your wife should therefore send a WRITTEN request to the Plan Administrator. Make certain that she sends it to the person or organization designated as Plan Administrator. This will be found in the Summary Plan Description that should have been provided when she became a participant. If she can't locate the Summary, ask the Human Resources Dept. for the name of the Administrator.  Penalties can be substantial if the Plan Administrator does not provide within 30 days.

The law changes so that beginning in 2007 or 2008 (I'm not certain which year), the Plan Administrator must provide statements on a regular basis.

If your wife does not get a response to her written request, she can contact the local office of the U.S. Dept. of Labor - Employee Benefits Security Administreation and they will be able to help.