The Dealership 401(k) Fiduciary Stress Test™
What the Lithia Motors Litigation Can Teach Every Dealer Principal, CFO and HR Leader
A practical executive guide to determining whether your dealership could defend its 401(k) decisions tomorrow.
Could your dealership defend its 401(k) decisions tomorrow?
For more than two decades specializing in 401(k) plans for franchise auto dealerships, I've heard some version of the same response from dealer principals and CFOs:
“We already have someone who handles that for us.”
Of course you do.
So did Lithia Motors.
Amir Shah, ChFC
The 401(k) Watchdog | AutoDealer401K.com
The $1 Billion Wake-Up Call
On February 19, 2026, a former employee filed a proposed class-action lawsuit against Lithia Motors, Inc. involving the company's approximately $1.03 billion 401(k) plan.
The complaint alleges breaches of fiduciary duty involving administrative and recordkeeping fees, the treatment of plan forfeitures, investment selection and transparency, provider relationships and compensation, and the fiduciary process surrounding those decisions.
These are allegations. The lawsuit has not established that Lithia Motors violated ERISA, and Lithia is defending the litigation. For another dealership, the most useful question isn't whether the plaintiffs ultimately win — it's whether the same questions could be asked about our plan.
Delegation Isn't the Same as Oversight
A dealership doesn't have to become an expert in recordkeeping, investments, ERISA or plan administration. That's why professionals are hired. But hiring professionals does not, by itself, end the fiduciary oversight process. Plan fiduciaries generally have responsibilities associated with prudently selecting and monitoring service providers.
Delegation
“We hired qualified professionals to handle this.”
Oversight
“We have a documented process for determining whether the professionals we've hired continue to provide appropriate services at reasonable fees.”
Hiring an advisor, recordkeeper or TPA shifts the execution of the work — not the responsibility to monitor whether the work is being done well.
The Central Question
If you were asked to defend your dealership's 401(k) decisions tomorrow — could you?
Not your advisor.
Not your recordkeeper.
Not your TPA.
You, the dealership.
What the Complete Whitepaper Examines
The complete whitepaper applies a practical stress test to six major fiduciary areas.
- 01
Participant Cost
What is each participant paying for the 401(k) services you've selected?
- 02
Competitive Benchmarking
How does your plan compare with similar dealerships?
- 03
Advisor & Provider Compensation
How is every major provider being compensated?
- 04
Investment Oversight
What process is being used to select and monitor investments?
- 05
Forfeitures
How are forfeited plan assets being handled?
- 06
Fiduciary Documentation
Could the dealership produce evidence supporting its decisions?
Get the Complete Whitepaper
The Dealership 401(k) Fiduciary Stress Test™
The complete whitepaper examines six areas of 401(k) fiduciary oversight and provides dealership executives with a practical framework for evaluating their existing plan and the professionals serving it.
Included with the complete whitepaper:
- —Complete six-part Dealership 401(k) Fiduciary Stress Test™
- —10-question Executive Diagnostic
- —Participant Cost Worksheet
- —Provider Compensation Worksheet
- —Fiduciary Documentation Checklist
- —10 Questions to Ask Your Advisor
- —Annual Monitoring Checklist
- —Printable PDF edition