Q&A: Madoff revisited?

August 7, 2009

It is extremely important that you receive proof that there are accounts holding your plan assets.

Q: Our business switched third-party administrators for our 401(k) plan, and I am concerned about how we can account for our money when it is forwarded to the 401(k). With our previous administrator, we would get statements directly from the brokerage house stating that shares were purchased. But the new administrator has us send money to another company that supposedly forwards our money to the brokerage. We never receive statements from the brokerage, only the third-party administrator. How do we account for our money to see that it is truly getting to the brokerage?