Lennar Corp. Draws Lawsuit Over 401(k) Plan Forfeiture Handling

Lennar Corp. was hit with a proposed class action saying it mishandles the 401(k) money forfeited by departing workers by using these amounts to make its required plan contributions.

Lennar’s 401(k) plan document requires that forfeitures be used to reduce administrative expenses before being put toward employer contributions, but the homebuilder has consistently flouted this requirement, according to the lawsuit. This benefited the company’s bottom line while hurting workers’ retirement savings, plaintiff Humberto Requiz said in a complaint filed Monday in the US District Court for the Southern District of Florida.

• Requiz brings claims under the Employee Retirement Income Security ...