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401(k) Quiz: Fiduciary Risk
Is your company exposed to 401(k) fiduciary risk? Try your hand at these five questions.
Dave Cook, CFO.com | US

Today, you're a hero for offering tech stocks, and employees think they're masters of the universe for selecting these investments. But if we hit a rocky patch in a few years, and baby boomers retire, they'll look for someone to blame for the poor performance of their pension plans. They'll whine and scream and sue their fiduciaries. Count on it.

—Alden Bianchi, a partner in the law firm of Mirick, O’Connell, DeMallie & Lougee (CFO, April 2000)


Take a few minutes and try your hand at this five-question quiz. There's no scorekeeping involved — just some friendly words of warning. The questions and answers are drawn from CFO articles on 401(k) plans; all of them are included in the archive on the main page of this buyer's guide.

Question #1 In the wake of Enron, offering your company's stock in your own 401(k) plan is considered a major fiduciary risk by many observers. In a recent study of about 50,000 plans that covered 15 million participants, how many of those participants were in a plan that offered company stock: 10 percent, 25 percent, 45 percent, or 75 percent?

See the answer



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