Client Alert

Client Alert—Approaching Enforcement Date for the “Red Flags Rule” Raises Questions for Some 401(k) Plan Sponsors
Authors: Susan P. Serota, Bradley A. Benedict

4/22/2009
Plan sponsors that are considered “financial institutions” or “creditors” (as defined below) may be subject to the Red Flags Rule on and after May 1, 2009, with respect to employee benefit plans that offer plan loans or feature individual accounts.

The Red Flags Rule requires certain entities to establish a written program to prevent, detect, and mitigate identity theft associated with certain types of accounts. A 401(k) plan or other benefit plan could fall within the scope of the regulations.

The following Q&As explain the Red Flags Rule, provide guidance on determining whether the Rule applies to an entity, and outlines the Rule’s requirements.

To read this publication in its entirety, click the link in the adjacent "Downloads" section.