Today is April Fools day, but this is no joke. According to Bankrate:
"In 2007, the U.S. Department of Labor's Employee Benefits Security Administration, or EBSA, the agency charged with enforcing 401(k) regulations, investigated more than 1,326 cases of 401(k) mismanagement or malfeasance, resulting in more than $51 million in restitution and penalties."
Do the math: that's $38,460 per case. That's not small change.
So, it seems that the senior executives at many small, medium and large companies have "mugged" their employees. These executives seem to manage their employee 401(K) retirement plans using the flow below: