When the 'K" in 401(k) means "Kiss it goodbye"

Is your 401(k) plan safe? Recommended reading for those that work for small companies:

By law, all assets in 401(k) plans must be covered by private insurance policies known as fidelity bonds. But the bonds are required to cover just 10% of the retirement plan's assets or $1 million, whichever is less. ...
At companies with fewer than 100 employees — such as Elliott's company — the plans are not subject to annual independent audits that could deter embezzlement. An estimated 9 million Americans have their savings in 401(k) and profit-sharing plans small enough to be exempt from the annual audit requirement. That's about 20% of the people in defined-contribution retirement plans.

The Elliott referred to in the quote is Jim Elliott, 55, who watched $230,000 of savings in his 401(k) plan disappear. The president of the company was also the plan's sole trustee, and seemed to view the company's retirement fund as a source of keeping the company afloat.

In addition to the tips listed at the end of the article, if you find yourself working for a company exempt from an annual independent audit, find out who the trustee(s) is/are and how they intend to let everyone know their savings are safe.