Intuit Hit With Class Suit Over Forfeiture Use in Worker 401(k)

A participant in Intuit Inc.'s retirement plan filed a proposed class action saying the software maker improperly uses money forfeited by workers to pay down its obligation to contribute to the plan.

Plaintiff Deborah Rodriguez challenges how Intuit handles the unvested portion of a worker’s 401(k) account that’s forfeited when they leave the company after a short period. The plan allows Intuit to use this money to lower administrative expenses, but the company instead uses it to reduce the matching contributions it would otherwise have to make to the plan, Rodriguez says.

The lawsuit, filed Monday in the US ...