Robert
Their negligence cost us thousands of dollars!
On 3/14/25, the CEO (also Owner) of Employee Fiduciary sent us a NOTICE OF TERMINATION OF SERVICES in response to the previous day's honest sharing here of our experience with the company: Their negligence resulted in thousands of dollars of costs (double taxes, early withdrawal penalties, etc.) to us. They gave us a new rep, but the owner would not accept responsibility or reimburse us for the costs (except to waive a few hundred dollars of their fees). Edited to add: We have experienced several issues with the company. When our accountant notified us of overcontributions to our 401k accounts, we immediately contacted Employee Fiduciary. Instead of quickly returning the funds, they told us to wait for year-end testing and the funds would be returned then. When we asked about the status of the return of funds 13 months later during tax preparation, they told that the testing was not yet complete! The eventual late distribution of funds caused significant penalties (thousands of dollars) to us. Another issue occurred when we noticed that Employee Fiduciary deducted almost $25,000 from our account. When we asked for the reason for this deduction, they said that we had requested it. They forwarded to us a spreadsheet with the names of the employees that the funds were applied to. We told them that we did not recognize any of the names. They eventually acknowledged the mistake and finally returned the funds weeks later. (Trustpilot reviewed and verified this information.) So, you may really need to keep an eye on what this company is doing or it may end up costing you big time!
Response from Employee FiduciaryMar 14, 2025
Robert - We’ve thoroughly reviewed your updated claims and appreciate the opportunity to clarify. Your claim of negligence relates to 2020 excess contributions. In September 2020, you notified us that you and your wife exceeded the year’s 402(g) limit and asked our representative about the process for refunding the excess amounts calculated by your CPA. She explained that we generally handle contribution refunds during year-end testing. That’s what happened in 2021. We did not hear about this matter again until October 2022, when you raised it with our CEO. At that time, we credited a quarter’s fees as a goodwill gesture – our CEO thought our rep should have confirmed that you understood the personal tax consequences to you and your wife if the refunds happened after April 15, 2021 in her September 2020 response. Regarding the $25,000 claim: your current representative has no memory of this issue, and we found no record of it after reviewing your plan’s transaction history for 2022 through 2025. These matters were taken seriously and addressed transparently. Despite our efforts, ongoing threats and dissatisfaction over several years led us to terminate our relationship.