Many 401k plan sponsors are currently engaged in conversations with their third-party plan administrators, payroll vendors, and advisors about implementing the new Roth catch-up contribution rules that were released on September 16, 2025. This article serves as a reminder for plan sponsors to also consider their non-qualified deferred compensation plans during these discussions.
Many 401k plan sponsors are currently engaged in conversations with their third-party plan administrators, payroll vendors, and advisors about implementing the new Roth catch-up contribution rules that were released on September 16, 2025. This article serves as a reminder for plan sponsors to also consider their non-qualified deferred compensation plans during these discussions.
SECURE 2.0's Roth catch-up contribution rule has sparked controversy due to its complexity and administrative burdens for employers and third-party administrators. The IRS and Treasury released final regulations on September 15, 2025, to provide guidance for the rule's implementation, set for January 1, 2026. While the regulations become generally effective on January 1, 2027, the Roth Catch-up Rule must be enforced a year earlier. This article outlines the key provisions of these final regulations and highlights significant changes from the proposed version.
On October 1, 2025, the US District Court for the Northern District of Texas issued a final judgment in a significant ERISA class action involving the fiduciaries of American Airlines' 401k plan. Earlier in January, the court determined that the fiduciaries breached their duty of loyalty by allowing BlackRock to pursue non-financial ESG objectives in managing certain investment trusts within the 401k plan. The case is expected to draw increased scrutiny to the proxy voting policies and procedures of ERISA plans, particularly regarding how fund managers pursue ESG objectives through proxy voting and shareholder activism.
Today's retirement plan participants are actively engaged in saving, goal-setting, and utilizing tools, leading to a strong sense of confidence in their progress. To assess how well participants perceive their progress towards retirement goals, eight key outcomes across four financial areas were identified and compared with actual data. The findings explore the differences in financial wellness and retirement readiness across various life stages and generations. Additionally, the paper provides actionable strategies for employers to offer personalized and relevant support, enabling participants to make informed decisions, build confidence, and achieve lasting success in their retirement planning.
Retirement plans are increasingly vulnerable to cyberattacks targeting sensitive personal data and substantial retirement assets. As a result, cybersecurity has become a critical fiduciary duty for plan sponsors, rather than just an IT issue. Therefore, plan sponsors must not only secure their own systems but also ensure that all vendors involved, including recordkeepers and advisors, implement strong cybersecurity measures. In a recent interview, Robert Massa from Prime Capital Financial highlighted common mistakes made by plan sponsors, emphasizing the need for greater attention to fiduciary responsibilities and cybersecurity practices.
Retirement plans, particularly 401ks, are evolving from mere savings tools into vehicles for generating retirement income. Employers face a crucial transition in addressing the need for in-plan retirement income solutions. To support participants' long-term financial security, it's essential for plan sponsors to consider design changes, focusing on incorporating retirement income options into these plans. Three key insights reviewed here highlight the necessity for these adjustments to meet the shifting needs of retirement planning.
A federal judge has limited the role of environmental, social, and governance factors in American Airlines' 401k plan following a ruling in the case Spence v. American Airlines Inc. in the Northern District of Texas. Judge Reed O'Connor found that American Airlines engaged in fiduciary misconduct by allowing BlackRock's ESG considerations to affect the retirement plan's core index portfolios, breaching its duty of loyalty under ERISA. However, the judge determined that American Airlines did not breach its duty of prudence, as it acted in line with industry practices. Additionally, the plaintiffs could not prove monetary losses to the plan, so they were not awarded damages.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
