Carol McClarnon Quoted in Newsweek: “Trump's 401(k) Change: What Administrators and Employees Need to Know”
Carol McClarnon was quoted in a Newsweek article titled “Trump's 401(k) Change: What Administrators and Employees Need to Know.” The article discusses a recent executive order that has opened the door for alternative investments to be included in 401(k) plans, potentially reshaping how the savings of millions of Americans are managed.
McClarnon stated the main thing plan sponsors and fund managers must be aware of is increased litigation risk. "There are law firms that focus on filing 'excessive fee' lawsuits against 401(k) plan sponsors and financial professionals," she said, but noted that Trump's executive order also instructs the Department of Labor to address this in its upcoming guidance.
"Plan sponsors and employees who are open to private equity but lack the expertise can focus on pooled investment funds that are managed by advisers with significant expertise," she added.
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