BofA Is Latest Employer Sued Over Use of 401(k) Forfeitures

Bank of America Corp. was hit with a proposed class action saying it improperly benefits from the 401(k) plan money forfeited by workers who leave their jobs after short periods.

The lawsuit challenges the bank’s practice of using 401(k) forfeitures to reduce the money it would otherwise be required to contribute to its retirement plan. The bank violated the Employee Retirement Income Security Act by using millions of dollars in plan forfeitures for its own benefit instead of for the benefit of plan participants, said a complaint filed Aug. 9 in the US District Court for the Central District of ...