Toyota Hit with Potential Class Action Over 401(k) Plan Fees (1)

A Toyota Motor Corp. subsidiary was sued Tuesday by four former employees who say the car company mismanages their $11.9 billion retirement plan by overpaying for administrative services.

Toyota’s 401(k) plan, which covered more than 50,000 people as of 2023, paid between $37 and $56 per person each year for recordkeeping services, the employees said in a proposed class complaint. These fees “far exceed” the $29 annual fee quoted in the plan’s summary description, and they’re well above the rates charged to other retirement plans that are similar in size, the workers said.

The lawsuit, filed in the US ...