Daily Article Digest - Updated Regularly

This digest contains a wide variety of the freshest source material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues regarding 401k, 403b and other retirement plans. Each listing contains a headline (hyperlinked to the source document), description, source of the item, and the month and year posted to this digest.

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The Supreme Court Prohibits ERISA

In the case of Cunningham vs. Cornell University, the U.S. Supreme Court clarified the pleading requirements for prohibited transaction claims under ERISA section 406(a)(1)(C). The Court ruled that a plaintiff only needs to allege facts showing that a fiduciary caused an employee benefit plan to receive services from a party in interest, without having to demonstrate the inapplicability of ERISA section 408(b)(2)(A). The author argues that the court's ruling is fundamentally flawed because the definition of "party in interest" encompasses all plan fiduciaries. This interpretation allows for lawsuits concerning all transactions where a plan receives services, including those that ERISA mandates fiduciaries to provide. Consequently, the Court's reading creates a contradiction, as it simultaneously requires fiduciaries to perform certain actions while prohibiting them from engaging in those same actions.

Source: Ssrn.com, October 2025

What to Know When Changing Providers

When moving from one retirement plan service provider to another, there are crucial considerations for plan sponsors and new service providers. An increasing number of plans are switching from their existing third-party administrators or bundled providers, according to PenChecks. In a recent webinar, Brian Furgala, Senior Director of Retirement Services Strategy at PenChecks, emphasized the importance of addressing various factors to ensure a smooth transition. This process can help protect both the plan sponsor and the new provider while facilitating effective plan administration for participants.

Source: Psca.org, October 2025

Schlichter Looking for $17.5 Million Payday in Pentegra Suit

Schlichter Bogard LLC is seeking what could be the largest attorney fee award following a significant jury verdict in an ERISA class action case, which totaled $38,760,232 for excessive administrative fees. Subsequently, on May 1, 2025, the parties settled the case for $48,500,000, surpassing the jury verdict amount. Schlichter argues that, in accordance with the common fund doctrine, the Court should grant Class Counsel attorney fees amounting to $16,513,179, which represents one-third of the common fund or "Gross Settlement Balance." Additionally, they are requesting reimbursement for reasonable litigation expenses totaling $1,044,209.46, the majority of which pertains to the costs incurred for essential experts that contributed to the jury's verdict.

Source: Napa-net.org, October 2025

Lessons in Arrogance: What We Can Learn From the Mistakes of Overconfident Plan Providers

The author emphasizes the distinction between confidence and arrogance in business. While confidence is essential, arrogance can be detrimental. It can lead to a lack of awareness of risks, create isolation from peers, and erode the foundational elements of trust and relationships. When professionals become arrogant, they tend to stop listening, which hinders their growth and development. The author identifies common mistakes made by overly arrogant providers, highlighting the importance of maintaining humility and openness in the business world.

Source: Jdsupra.com, October 2025

What Employers Need to Know About Trump Accounts

The One Big Beautiful Bill Act, signed into law on July 4, 2025, establishes "Trump Accounts," a new tax-preferred savings option for children aimed at promoting early investing. The law provides an initial $1,000 government contribution to these accounts for newborns from 2025 to 2028. Individuals, including parents and grandparents, can contribute up to $5,000 annually, and employers may also contribute to support employee recruitment and retention. The article outlines key considerations for employers regarding contributions, account eligibility, plan document requirements, investment options, and nondiscrimination rules, while noting that further guidance from the IRS will be needed on some issues.

Source: Ifebp.org, October 2025

Required Roth Catch-Up Goes Live in 2026

The IRS has released final regulations related to a provision in the SECURE 2.0 Act of 2022. These regulations state that participants in 401k or 403b plans, who have FICA wages exceeding a specific dollar amount from the sponsoring employer in the previous year, can only make catch-up contributions as designated Roth contributions. The article discusses key aspects of these final regulations and their implications.

Source: Erisalitigation.com, October 2025

IRS Elects to Contribute Complex Final Regulations on Super and Roth Catch-ups

On September 16, 2025, the IRS released final regulations regarding two new catch-up contribution provisions from the SECURE 2.0 Act of 2022. The provisions allow participants aged 60 to 63 to make increased catch-up contributions and require higher-income participants' catch-up contributions to be made as Roth contributions. These final regulations confirm that plan sponsors must implement the Roth catch-up requirement starting with the 2026 taxable year. While the final regulations largely follow the proposed regulations from January, they include clarifications and offer plan sponsors more flexibility in their administration.

Source: Eversheds-Sutherland.com, October 2025

Forgotten 401k Assets Hit $2.1 Trillion

According to a recent analysis by Capitalize, the number of lost 401k accounts has surged by 30%, now totaling $2.1 trillion in assets. The 2023 report, conducted in partnership with the Center for Retirement Research, reveals that as of July 2025, there are 31.9 million misplaced accounts. The report highlights a steady increase in forgotten 401k accounts, with 3.5 million left behind in 2023, 4 million in 2024, and an expected 4.2 million in 2025.

Source: 401kspecialistmag.com, October 2025

$1K Boost Projected for 2026 401k Employee Contribution Limit

According to a Milliman forecast, the IRS is expected to increase the maximum 401k contribution limit for employees by $1,000 in 2026, raising it from $23,500 to $24,500. Moreover, the Milliman forecast stated, "If the change in CPI in September is 0.7% or greater, the compensation limit for 2026 will be set at $365,000 instead of $360,000, and the maximum annual contribution for defined contribution plans will rise to $73,000 instead of $72,000."

Source: 401kspecialistmag.com, October 2025

What Might Top EBSA's Priority List Under Aronowitz?

Daniel Aronowitz, recently confirmed as the head of the Employee Benefits Security Administration, is expected to prioritize streamlining retirement plan oversight and reducing litigation in his new role. During his confirmation hearings, he also expressed a commitment to ending the "war" on employee stock ownership plans. However, an executive order from President Trump on August 7, which calls for a reevaluation of guidance on alternative investments in defined contribution plans, may quickly become a top priority for Aronowitz.

Source: Plansponsor.com, October 2025

This 401k Change Could Impact How You Make Catch-Up Contributions

Beginning next year, older workers making catch-up contributions to retirement plans such as 401ks may need to do so on a Roth basis. Specifically, starting in 2026, workers aged 50 and older who earn over $145,000 will be required to make 401k catch-up contributions on a Roth basis, meaning they will pay taxes on those contributions upfront. This income threshold is indexed to inflation. Not all retirement plans may offer a Roth option, potentially limiting access to catch-up contributions for some high earners. However, Roth contributions allow for tax-free withdrawals in retirement, which may benefit those anticipating higher tax rates later on.

Source: Investopedia.com, October 2025

IRS Issues Final Regulations on Roth Catch-Up Mandate for Higher Earners Ahead of Implementation Deadline

On September 15, 2025, the IRS released final regulations implementing provisions of the SECURE 2.0 Act concerning catch-up contributions for individuals aged 50 and older in employer-sponsored retirement plans. Notably, the IRS did not extend the transition period for the Roth catch-up requirement for higher earners, which must be in place by 2026. The final rules provide plan administrators with guidance on various administrative aspects, such as the deemed Roth catch-up election, an optional employer aggregation rule, and increased flexibility for corrections. Additionally, the final regulations include several modifications and clarifications to the previously proposed rules.

Source: Icemiller.com, September 2025

Class Action Over 401k Forfeitures and Fees Against Energy Co. Survives Dismissal

A federal judge in Florida has denied NextEra Energy's motion to dismiss a class action lawsuit filed by employee John Stewart under ERISA. Stewart alleges that the company misappropriated forfeited funds and that a recordkeeper profited unfairly from plan earnings. The judge found Stewart's claims detailed enough to proceed, rejecting NextEra's defense that its use of forfeited funds was authorized by plan documents. This ruling referenced a similar case involving JPMorgan Chase & Co., where a court ruled that prohibitive language in the plan prevented the use of forfeited funds to reduce plan expenses.

Source: Hallbenefitslaw.com, September 2025

Things I Worry About: Pooled Employer Plans and DOL RFI

This series of articles explores the DOL's release from July 29, 2025, which provides interpretative guidance on Pooled Employer Plans. The release seeks input on PEP practices, offers tips for selecting PEPs, and considers a potential fiduciary safe harbor for adopting them. This first article in the series highlights key information about PEPs presented in the guidance. Notably, the preamble includes compelling insights into the development of PEPs.

Source: Fredreish.com, September 2025

AI Advice Tools Demand Fiduciary Oversight in 401k Vendor Relationships

AI-driven participant advice tools have evolved from minor enhancements in retirement plan platforms to comprehensive robo-adviser services, providing personalized advice, enrollment coaching, claims processing, and predictive savings nudges. While these advancements promise improved efficiency and data-driven insights, regulators caution that fiduciaries cannot relinquish their prudence. Recommendations generated by AI do not inherently imply fiduciary responsibility, increasing the stakes for 401k plan fiduciaries due to potential biases, opaque algorithms, and data privacy risks. This article covers the question, "With AI advice tools embedded in recordkeeping and advice platforms, what due diligence steps must fiduciaries take to evaluate transparency, mitigate bias, and stay compliant under ERISA?"

Source: Fiduciarynews.com, September 2025

DOL Advisory Opinion 2025-04A: Don't Be Stupid

DOL Advisory Opinion 2025-04A highlights a concerning point regarding default allocations in retirement plans, specifically noting that when participants do not select an allocation, the plan sponsor defaults to a percentage. This raises red flags since it suggests active involvement by plan sponsors in making allocation decisions, particularly when the annuity product in question may not meet fiduciary prudence standards. Although participants can adjust the allocation later, the product's complexity and potential for confusion may lead to fiduciary litigation risks. Given that there is no legal requirement to offer the product, the author suggests that it is prudent for plan sponsors to avoid including it in the plan to protect against unnecessary fiduciary liability.

Source: Fiduciaryinvestsense.com, September 2025

Employers Ready to Add Private Market Investments to Retirement Plans: Empower Survey

Empower recently released survey findings indicating strong employer interest in incorporating private market investments into defined contribution retirement plans. The results, which align with earlier studies of plan participants and financial advisors, reveal significant demand for expanded access to private equity, private credit, and private real estate. Edmund F. Murphy III, President and CEO of Empower, emphasized that employers are eager to modernize retirement plans by including private markets, contingent on a clear policy environment.

Source: Empower.com, September 2025

The In-Plan Annuity and the DOL's New Advisory Opinion 2025-04

The DOL's recent advisory opinion, 2025-04, confirms two key legal principles that support many defined contribution lifetime income programs currently available. It provides valuable insight into the specific LIS program from Alliance Bernstein, establishing a framework for similar programs. Notably, the opinion validates that in-plan annuities can be included as part of an in-plan Qualified Default Investment Alternative managed account, provided that all other QDIA managed account regulations are followed.

Source: Businessofbenefits.com, September 2025

Forfeiture Accounts: Why Strong Oversight From Plan Sponsors Matters

Employers sponsoring 401k and 403b retirement plans should be vigilant about plan forfeitures that occur when employees leave before becoming fully vested. It's crucial to manage these funds effectively, as allowing forfeiture accounts to accumulate can lead to complications. ERISA plan documents typically include provisions for managing forfeiture accounts, influenced by IRS proposed regulations from February 2023. Plan fiduciaries need to not only be aware of these rules but also understand how to apply them to their specific situations. This article provides essential insights for managing forfeiture accounts, emphasizing the importance of understanding the relevant regulations.

Source: Bdo.com, September 2025

DOL Issues Advisory Opinion Regarding Lifetime Income Solutions as a QDIA

The DOL has released Advisory Opinion 2025-04A, which determines that the Lifetime Income Strategy program from AllianceBernstein L.P. can qualify as a Qualified Default Investment Alternative for defined contribution plans under ERISA. This program includes lifetime withdrawal benefits that ensure a guaranteed income stream in retirement. The advisory notes that earlier discussions on variable annuity contracts in relation to target-date and balanced funds were intended for clarification and do not exclude their application to managed accounts.

Source: Ascensus.com, September 2025

Gen X Nearing Retirement With Worries About Limited Savings, Allianz Life Study Finds

The 2025 Q3 Quarterly Market Perceptions Study by Allianz Life reveals that Generation X is particularly anxious about inflation and market volatility as they near retirement. Only 19% believe it is a good time to invest, a drop from 30% the previous quarter, making it the lowest among all generations. In comparison, 39% of Gen Z, 36% of millennials, and 29% of boomers see current market conditions favorably. Overall, just 30% of Americans feel it's a good time to invest. Additionally, 54% of both Gen Xers and millennials express concerns about a potential market crash, compared to 47% of Gen Z and 48% of boomers.

Source: Allianzlife.com, September 2025

Confidence Doesn't Stop Employees From Making Reactive Investment Decisions

The fifth annual Protected Retirement Survey by Nationwide Retirement Institute reveals that while employees express higher levels of financial confidence regarding their retirement savings, many still invest reactively in response to market volatility. Despite optimism, with 79% of workers viewing their savings positively, 48% have moved their investments to more conservative options due to economic instability, particularly younger workers aged 22 to 34, of whom 54% have made similar shifts. Additionally, the percentage of employees on track with their retirement preparedness rose from 65% in 2024 to 71% in 2025.

Source: 401kspecialistmag.com, September 2025

Retirement Savers Feel Lack of Control Over Their 401ks: Pontera

A new Pontera study reveals that fewer than 20% of Americans feel highly knowledgeable and confident about managing their retirement and college savings accounts. Two-thirds of retirement savers lack a sense of control over critical decisions regarding their workplace retirement plans, often grappling with complex rules and multiple account types. According to Yoav Zurel, CEO of Pontera, this lack of confidence highlights the need for clearer guidance and professional advice tailored to individual needs, as 70% of Americans believe their financial planning requires improvement.

Source: 401kspecialistmag.com, September 2025

Forgotten 401k Assets Hit $2.1 Trillion

The latest analysis by Capitalize reveals a significant increase in lost 401k accounts, with assets rising 30% to $2.1 trillion. According to their updated 2023 report, "The True Costs of Forgotten 401k Accounts," in partnership with the Center for Retirement Research, there are currently 31.9 million misplaced 401k accounts as of July 2025. The report indicates a growing trend, with 3.5 million accounts left behind in 2023, four million in 2024, and an anticipated 4.2 million in 2025.

Source: 401kspecialistmag.com, September 2025

Final Catch-Up Contribution Rule Provides Some Relief

The final rule does not extend the effective date for the Roth catch-up contribution requirement for plans, except for multiemployer plans. For other plans, participants earning over $145,000 from their 2026 employer in 2025 must make all catch-up contributions in 2026 as Roth contributions instead of pre-tax contributions. Until the final rule is enacted, plans must comply with SECURE 2.0 using a reasonable, good-faith interpretation, and following the final rule will be considered such an interpretation.

Source: Segalco.com, September 2025*

Three Retirement Bills Advance to Full House of Representatives

During a markup session on Wednesday, the House Committee on Education and the Workforce moved forward with three bills related to retirement. Two of these bills, which were introduced in April, focus on the audit procedures of the Department of Labor and generated significant debate during a committee hearing on July 22. The third bill addresses valuations of employee stock ownership plans and has garnered bipartisan support in both chambers of Congress. All three bills are now set to proceed to the full House of Representatives.

Source: Planadviser.com, September 2025

Law Firm Husch Blackwell Accused of 401k Self-Dealing

An attorney and former employee of Husch Blackwell LLP has filed a federal lawsuit against the law firm and its executive board members, alleging violations of fiduciary duties under ERISA. The complaint claims that the firm engaged in self-dealing and other breaches by failing to timely remit withheld employee contributions to the retirement plan, despite deducting the amounts from employee paychecks. The proposed class includes all plan participants and beneficiaries employed by the firm since September 16, 2019.

Source: Planadviser.com, September 2025

Private Equity in DC Plans: Prioritizing Expertise Over Exuberance

Private market assets are increasingly being integrated into defined contribution plans due to changing regulatory guidelines. These assets, including private equity, private debt, real estate, and infrastructure, offer attractive potential returns but also present challenges such as illiquidity, high fees, and complex management selection. The risks include possible underperformance and increased litigation. This paper examines recent developments that tackle these investment and operational issues, enhancing the feasibility of private markets, particularly private equity, for DC plan sponsors. It covers the entire investment process, including asset allocation, portfolio construction, implementation, and manager selection.

Source: Nepc.com, September 2025

U.S. Retirement Assets Climb to Nearly $46 Trillion in Second Quarter

The Investment Company Institute announced that U.S. retirement assets reached a record high of $45.8 trillion by June 30, 2025, reflecting a 6% increase since March. This total represents 34% of all household financial assets in the country. Defined contribution plan assets amounted to $13 trillion, rising 6.4% from the previous quarter. Additionally, private-sector defined benefit plans had $3 trillion in assets, while annuity reserves outside retirement accounts were $2.5 trillion.

Source: Napa-net.org, September 2025

EBSA Nominee Aronowitz Confirmed by Senate

The U.S. Senate approved Daniel Aronowitz's nomination as Assistant Secretary of Labor to oversee the Employee Benefits Security Administration after a seven-month wait. The Senate voted 51-47 to confirm him, alongside 47 other Trump administration nominees, using a modified voting procedure known as the "nuclear option."

Source: Napa-net.org, September 2025

Judge (Mostly) Dismisses 401k Fiduciary Forfeiture Reallocation Suit

Ariel Armenta filed a lawsuit against WillScot Mobile Mini regarding the 401k Plan, alleging that the company breached its fiduciary duties under ERISA by improperly allocating plan forfeitures and engaging in self-dealing. Judge Liburdi dismissed claims that forfeitures should solely benefit participants and cover administrative expenses, stating that the plan document allowed the actions taken and that the order of reallocation was not specified in the Plan terms.

Source: Napa-net.org, September 2025

Alternative Assets for DC Plans

Under an executive order issued by President Donald Trump in August, participants in defined contribution plans could gain increased access to alternative investments. The order, titled “Democratizing Access to Alternative Assets for 401k Investors,” instructs the Secretary of Labor to review the Department of Labor's guidance regarding the inclusion of alternative assets in asset allocation funds for participants. This article outlines various types of alternative investments referenced in the executive order.

Source: Ifebp.org, September 2025

IRS Issues Final Regulations on Catch-Up Rule Changes

On September 16, 2025, the Treasury Department and the IRS issued final regulations concerning catch-up contributions as dictated by the SECURE 2.0 Act of 2022 for 401k, 403b, and governmental 457b plans. These final regulations provide essential guidance to address significant questions raised by employers and plan administrators following the proposed regulations issued in January. The article is structured into three parts: Parts I and II summarize the resolutions of key questions regarding changes to catch-up contributions, while Part III discusses the applicability dates of these regulations.

Source: Groom.com, September 2025

Ten Traits of Top-Tier Recordkeepers

The recordkeeper of your retirement plan is essential in enhancing the participant experience, ensuring regulatory compliance, and offering fiduciary oversight. The most effective providers deliver a wide range of services and typically exhibit these 10 key traits.

Source: Francisway.com, September 2025

Qualified Domestic Relations Orders Under ERISA: A Practical Guide

Each year, divorced individuals look forward to receiving the retirement benefits designated to them in their divorce decree, and most of the time, they do. However, there are instances where a valid Qualified Domestic Relations Order is not obtained, leading to ongoing disputes and the potential loss of anticipated benefit payments. This guide offers practical advice on ensuring that ERISA-covered retirement benefits are divided through a valid QDRO, alleviating concerns about receiving the benefits you expected post-divorce. Although these tips are primarily targeted at individuals navigating a divorce, they will also be beneficial for attorneys.

Source: Dol.gov, September 2025

DOL Advisory Opinion 2025-04A

The letter addresses a request from AllianceBernstein L.P. for an advisory opinion on its Lifetime Income Strategy program. The LIS program aims to be an investment option for participant-directed defined contribution plans governed by ERISA. AB seeks to determine if the LIS program qualifies as a qualified default investment alternative under ERISA section 404(c)(5) and the corresponding regulation at 29 CFR 2550.404c-5.

Source: Dol.gov, September 2025

The 401k Committee

While ERISA does not mandate the establishment of a committee for company-sponsored retirement plans, having a well-trained and organized committee can enhance prudent decision-making related to plan administration, investment selection, and oversight. Additionally, an effective committee can substantially mitigate the burdens and liabilities that would otherwise rest solely on the shoulders of the plan sponsor.

Source: Colonialsurety.com, September 2025

Debunking Four Myths Distorting Perceptions of Private Markets in Defined Contribution Plans

The new white paper from Cerulli and DCALTA, titled "Unlocking the Potential of Private Investments in Defined Contribution Plans," addresses prevalent misconceptions about integrating private markets into defined contribution plans. As asset managers, trustees, and recordkeepers explore incorporating private market allocations in target-date solutions and managed accounts, the research highlights four key misconceptions hindering progress. The concept of including private market options in participant investment strategies is relatively recent for many industry stakeholders, leading to concerns and misunderstandings that the paper aims to clarify.

Source: Cerulli.com, September 2025

What Happens to the 401k? Defined Contribution Decisions During M&A

Mindy Zatto and David Runsick from Strategic Benefits Advisors emphasize the importance of addressing 401k retirement plans during corporate acquisitions. In the flurry of negotiating and managing communications, the 401k plan often gets overlooked, despite its critical role as an employee benefit with fiduciary obligations and compliance responsibilities. Both buyers and sellers must consider the implications of their defined contribution plans, as decisions made during the acquisition can significantly impact the transaction's success and the overall employee experience.

Source: 401kspecialistmag.com, September 2025

U.S. Retirement Assets Back to Setting Record Highs in Q2: ICI

Total U.S. retirement assets reached a record high of $45.8 trillion as of June 30, 2025, representing a 6% increase from the end of Q1. This growth is attributed to strong stock market performance, with the S&P 500 rising nearly 11% and the Nasdaq Composite increasing almost 18% during Q2, alongside disciplined saving behavior and continued investments. Retirement assets now account for 34% of all household financial assets, despite earlier market volatility and tariff concerns.

Source: 401kspecialistmag.com, September 2025

Fuel Enrollment, Deferral Rates and Revenue by Going Digital

Jim Young from Broadridge highlights the benefits of automating retirement communications for plan participants and sponsors. In a dynamic regulatory and market environment, automation enhances communication agility and compliance. It also improves personalization, deliverability, and convenience, leading to increased participation and contributions. Overall, digital solutions facilitate better employee engagement and enable plan advisors to deliver significant value to both sponsors and employees.

Source: 401kspecialistmag.com, September 2025

Industry Best Practices and Procedures for Roth Catch-Up Contributions

Final regulations regarding Roth catch-up contribution rules were released on September 15, 2025, and will take effect in 2027. In the interim, plans are expected to follow a reasonable, good faith interpretation of Section 603 for the year 2026. This document provides best practices, along with designated roles and responsibilities, to ensure compliance with the Roth catch-up contribution requirements, with the goal of streamlining complex processes and fostering consistency across the industry.

Source: Sparkinstitute.org, September 2025*

Mandatory Roth Catch-Ups for Higher-FICA Wage Participants: Final Regulations

The IRS released Final Regulations on September 15, 2025, concerning mandatory Roth catch-up contributions for participants with higher FICA wages. These regulations maintain the "Deemed Roth Catch-up Election" rule from earlier proposed regulations. Under this rule, plans can automatically designate catch-up contributions as Roth for affected participants, provided they are offered a chance to opt out. To implement this option, plans must be amended accordingly.

Source: Sgrlaw.com, September 2025

What Happens When Default Rates Are High?

Researchers, including David Laibson from Harvard University, studied the impact of default savings rates on retirement outcomes by examining employees at a U.K. firm with a 12% default rate. They found that while 75% of employees opted out, 25% remained at the 12% savings rate, notably including many lower-income employees. Laibson suggests that these findings indicate the effectiveness of high default savings rates but also highlight the need for a more individualized approach to retirement plans.

Source: Plansponsor.com, September 2025

The Rise of Managed Accounts: Are They Right for Your Plan?

Managed accounts are investment portfolios overseen by professional managers who tailor asset allocation based on various financial factors and retirement age, going beyond the approach used by target-date funds. Incorporating managed accounts into retirement plans can offer personalized investment advice similar to that of traditional financial advisors, but in a more scalable and cost-effective way. They are particularly beneficial for participant demographics with higher balance accounts and older employees facing complex financial situations. However, there are some drawbacks to managed accounts that should be considered.

Source: Planpilot.com, September 2025

Federal Saver's Match, Coming in 2027, Could Boost Automated Retirement Savings Programs

Nearly 57 million American workers -- almost half of the private sector -- lack retirement benefits at their jobs. In response, 17 states have implemented automated individual retirement accounts to help close this savings gap. However, unlike 401k plans, auto-IRAs do not allow for employer contributions, which may reduce employee participation. A new federal initiative, the Saver's Match, set to launch in 2027, could change this by providing incentives for eligible workers, potentially increasing participation in state auto-IRA programs and encouraging higher voluntary contributions, thereby boosting overall savings.

Source: Pew.org, September 2025

Americans Are Retiring Later: Here's Why

An increasing number of employees are considering retiring at age 70--or not retiring at all. This trend may affect your workplace dynamics. So, what are the reasons behind this decision? Many are juggling ambitious savings goals, managing debt and financial pressures, facing healthcare uncertainties, and feeling anxious about stepping away from work. The positive aspect is that plan sponsors can assist these workers in feeling better prepared for retirement.

Source: Pensionplanspecialists.com, September 2025

What to Consider Regarding Cryptocurrency Investments in Retirement Plans

As financial advisors adapt to the evolving investment landscape, the challenge of incorporating emerging assets like cryptocurrency into retirement plans becomes significant. While cryptocurrencies present growth opportunities, they also carry unique risks that can affect the financial security of participants. To navigate this complexity, fiduciary analysts can align cryptocurrency investment considerations with best practices in fiduciary investment management.

Source: Napa-net.org, September 2025

House Bill Would Permit Transfer of Unclaimed Retirement Distributions

Reps. Seth Magaziner and Ron Estes have introduced the Unclaimed Retirement Rescue Plan, a bill that would authorize the DOL to regulate the transfer of unclaimed retirement distributions to state unclaimed property programs. If passed, the bill would allow, but not require, ERISA fiduciaries to transfer unclaimed balances after making efforts to contact the participant. Additionally, fiduciaries would be required to report the transfers to the DOL for inclusion in a Lost and Found database.

Source: Napa-net.org, September 2025

A Breakdown of Target-Date Fund Strategies in 2025

A deeper understanding of target-date strategies empowers asset managers to conduct better competitive analysis and deliver more differentiated offerings. Morningstar's 2025 Target-Date Fund Landscape report analyzes flows, fees, asset composition, top picks based on the Morningstar Medalist Rating, and more.

Source: Morningstar.com, September 2025

Final Catch-Up Contribution Regulations Under SECURE 2.0 Act

On September 15, 2025, the IRS released final regulations regarding catch-up contributions for 401k, 403b, and governmental 457b plans, in line with the SECURE 2.0 Act of 2022. These regulations outline provisions for "Super" Catch-Up Contributions and Mandatory Roth Catch-Up Contributions specifically for high-wage employees, aimed at participants aged 50 or older by the end of the year.

Source: Ktslaw.com, September 2025

Expanding 401k Investment Choices With Alternative Asset Allocation Funds

In August 2025, President Trump issued an executive order aimed at enhancing 401k participants' access to investment strategies that include alternative assets such as private equity, real estate, and digital assets. The order highlights the potential for these assets to provide competitive returns and diversification benefits, helping participants grow their retirement savings. Deputy Secretary of Labor Keith Sonderling expressed optimism about the future of innovative retirement products that can offer increased returns, diversification, and security for American workers. This article explores the implications of this policy change for plan sponsors.

Source: Ifebp.org, September 2025

Supreme Court Decision Impacts Retirement Plan Sponsors

On April 17, 2025, the U.S. Supreme Court delivered a unanimous and significant ruling in the case of Cunningham v. Cornell University, fundamentally altering the legal framework for retirement plan fiduciaries. If you play a role in managing your company's retirement plan, this decision goes beyond mere legal updates; it serves as a critical prompt to evaluate your plan's oversight methods and the quality of the advisory services you utilize.

Source: Francisway.com, September 2025

401k Plans and Audits

Generally, retirement plans sponsored by companies with 100 or more participants are required to submit an independent audit report along with their annual Form 5500 filing. Furthermore, both the DOL and the IRS have the authority to audit retirement plans. Therefore, it is advisable for plan sponsors to always be prepared for an audit. This article provides tips on how to get ready, including what to anticipate when notified of an audit.

Source: Colonialsurety.com, September 2025

Is Your Retirement Plan Correction Playbook Ready?

Retirement plans offer significant advantages to employees, but their administration can be quite complex. Even the most attentive plan sponsors can encounter errors. Since it's likely that mistakes will happen at some point during your retirement plan's duration, it's essential to have a strategy in place to effectively and promptly address any issues that arise.

Source: Brickergraydon.com, September 2025

Final Catch-Up Rules: What Now? (Spoiler Alert: There is No Extension)

The IRS has released final regulations regarding changes to catch-up contribution provisions under SECURE 2.0, following earlier proposed regulations. These final regulations address various administrative questions and clarify ambiguities that arose after the enactment of SECURE 2.0. This overview highlights key issues that have been resolved by these regulations.

Source: Beneficiallyyours.com, September 2025

Five Innovative Ways Organizations Can Use AI to Improve Their Retirement Plans

As employee benefits continue to change, artificial intelligence is becoming a transformative force in the realm of 401k and other retirement plans. By harnessing AI, companies can significantly improve retirement planning and boost employee engagement through innovative methods. Here are five compelling strategies for retirement plan sponsors to embrace AI and enhance their employee benefits programs.

Source: Alight.com, September 2025

Gen X Falling Behind on Retirement Planning

As Generation X approaches retirement, many are realizing they are less financially prepared than expected. A Northwestern Mutual study found that 54% of Gen Xers feel they won't be ready for retirement. With only a few years until retirement age for the oldest members, concerns about financial readiness are growing. Gen Xers estimate they need $1.57 million to retire comfortably, which is about $310,000 more than the national average previously reported.

Source: 401kspecialistmag.com, September 2025

IRS Releases Final Regulation for Roth Catch-Up Contributions

On Monday, the IRS released final regulations concerning a provision of SECURE 2.0 that will require certain high-income participants aged 50 and older to make Roth catch-up contributions. According to the agency, these Roth catch-up requirements will generally take effect for contributions made in taxable years that begin after December 31, 2026. Additionally, the IRS will establish a later applicability date for specific governmental plans and plans under collective bargaining agreements.

Source: 401kspecialistmag.com, September 2025

Want to be Highly Valued by Plan Sponsors? Improve Participant Outcomes

Fidelity Investments' 16th annual Plan Sponsor Attitudes Study reveals a strong correlation between plan sponsors' satisfaction with retirement plan advisors and their perception of employees' retirement readiness. The study, which surveyed over 1,100 employers, found that 74% of sponsors who believe participants are saving adequately for retirement express high satisfaction with their advisors, compared to only 58% for those who think otherwise. Christopher Alpaugh from Fidelity highlights that advisors play a crucial role in helping sponsors navigate complexities and enhance participant outcomes.

Source: 401kspecialistmag.com, September 2025

2025 Defined Contribution Consultant Study

T. Rowe Price's fifth annual Defined Contribution Consultant Study captures current perspectives from the DC consultant and advisor community on a variety of retirement topics. Continuing trends from previous years, the study addresses issues such as target date solutions, retirement income, managed accounts, fixed income investments, and financial wellness programs. New for 2025, the study examines consultants' adoption of artificial intelligence, expectations for implementing private assets, and financial wellness solutions focusing on student debt and emergency savings. The survey involved 36 prominent consultant and advisor firms, predominantly consultants (81%), managing nearly $9 trillion in assets under advisement, which accounts for over 70% of the $12.5 trillion DC plan market. The study was conducted from January 13 to March 10, 2025.

Source: Troweprice.com, September 2025*

The Hidden and Not-so-hidden Costs of Retirement Plan Complacency

Many organizations are concerned about the costs of retirement plans and often lack insight into what they are paying due to complex regulations and plan structures. This uncertainty can result in receiving suboptimal value from service providers and inadequate oversight from advisors. To address these issues, this guide aims to educate organizations on understanding retirement plan fees, the legal requirements for disclosures, and the process of benchmarking to ensure they receive fair value. It will also identify common mistakes and warning signs to watch for that indicate a current advisor may not be adequately serving their needs.

Source: Retirementplanology.com, September 2025

How Organizations Can Deliver Guaranteed Lifetime Income to Employees

The article discusses affordable strategies for companies to enhance their retirement programs by offering guaranteed lifetime income options to employees. With rising living costs making saving for retirement more challenging for many Americans, there is growing interest in these income guarantees. However, implementing such options poses significant challenges for finance and HR teams. The article examines how employers can assist employees in achieving guaranteed lifetime income and reviews cost-effective solutions to provide this essential benefit.

Source: Octoberthree.com, September 2025

Beware of DOL Cybersecurity Audits

The DOL is intensifying its focus on cybersecurity in audits and investigations, extending beyond the 2021 Best Practice Tips for health and welfare and retirement plans. Compliance with HIPAA alone is insufficient, as the DOL also evaluates service providers’ past security incidents and legal issues. Inquiries delve into specific employer procedures, including policies on portable devices, system maintenance for storing plan data, and password requirements. To prepare for potential DOL audits, plan sponsors should assess their cybersecurity practices comprehensively. The article reviews steps to evaluate their preparedness for a DOL audit.

Source: Groom.com, September 2025

The 2025 BlackRock "Read on Retirement" Survey

The 2025 BlackRock Read on Retirement survey offers ten years of insights from an annual study focused on workplace savers and retirees in the United States. This research was conducted from April 10 to May 19, 2025, while more than 450 plan sponsors were surveyed between February 2 and March 19, 2025. The survey was carried out by Escalent, an independent research firm, with all participants responding through an online questionnaire. Insights presented over 24 pages.

Source: Blackrock.com, September 2025

Retirement and Gig Workers

This policy paper examines the characteristics of nontraditional workers, particularly gig workers, who do not fit the conventional definitions of employees or independent contractors. As a growing segment of the workforce, these individuals often face significant financial challenges regarding retirement, primarily due to low earnings and insufficient savings. The paper identifies barriers that hinder gig workers from achieving financial security in retirement and discusses potential strategies to overcome these challenges. Additionally, it explores ways to improve gig workers' access to savings options and incentives to better prepare for their future financial needs.

Source: Actuary.org, September 2025

Key Provisions of SECURE Act 2.0 and Implementation Challenges for Defined Contribution Plans

The SECURE Act 2.0, passed in late 2022, is significantly transforming the retirement landscape with a range of phased-in provisions. As we move through 2025, plan sponsors, payroll providers, and administrators will encounter new operational and compliance challenges. This article highlights the key provisions and provides insights on how to navigate their effective implementation for defined contribution plans.

Source: Withum.com, September 2025

Private Equity in 401k Plans: What Advisors Need to Know

Advisors play a crucial role in helping plan fiduciaries assess whether private equity investments align with the plan sponsor's goals, risk tolerance, and the profile of participants. Before recommending private equity options to a plan's menu, advisors should consider several key factors: fiduciary prudence, operational complexity, and fees.

Source: Spconsultants.com, September 2025

New DOL Agenda Includes New ESG, Fiduciary Rules

The DOL has released its regulatory agenda for Spring 2025. This updated agenda includes topics such as Environmental, Social, and Governance issues, the fiduciary rule, auto-portability, pharmacy benefit managers, electronic disclosure, lost and found programs, employee stock ownership plans, and interpretative bulletin 95-1. The DOL emphasized that these actions aim to alleviate burdens on employers and employees, with a focus on regulatory changes regarding ESG, independent contractors, and PBMs.

Source: Psca.org, September 2025

Evaluating Auto Rollover IRA Providers

A recent article promoting auto-portability compared "traditional" automatic rollover IRAs to a landfill where those small balances languish and go unclaimed by accountholders. The "traditional" label was used to distinguish those automatic rollover IRAs from the auto-portability process. However, the auto-portability process also uses automatic rollover IRAs. To avoid being a landfill where small balances languish, automatic rollover IRAs should be assessed based on three criteria: minimal fees, a reasonable rate of return, and accessible information for better financial decision-making.

Source: Penchecks.com, September 2025

Gaps in Coverage Testing Can Sink the Ship

Coverage testing is an essential aspect of retirement plan qualification that is frequently neglected. This testing establishes minimum standards to ensure that retirement plans provide benefits to both Highly Compensated Employees and Non-Highly Compensated Employees. Plan sponsors are required to continually show that their plans encompass a diverse group of employees, rather than only catering to those at the top. Specific rules govern which employees must be included in the testing, and special considerations apply in complicated scenarios such as mergers, acquisitions, or related employers. Is your 401k plan facing a coverage gap that could jeopardize its success?

Source: Newfront.com, September 2025

The 2025 Advisors' Choice Top Recordkeepers

Which recordkeepers truly excel in the industry? Who offers the most exceptional services, support, products, and processes? Advisors, with their broad experience across different market segments and plans of varying sizes, are uniquely qualified to assess the wide array of available options. NAPA reached out to advisors to evaluate various service categories across five distinct market segments. They were asked to provide their insights solely on the services relevant to their target markets and to rate them on a five-point scale, ranging from "world-class" to "functional" and "needs work." Based on their evaluations, NAPA identified the top five recordkeepers in each of the five market segments categorized by size.

Source: Napa-net.org, September 2025

PR Treasury Issues Rules to Retirement Plan Sponsors That Adopted SECURE 2.0 Act Amendments

Puerto Rico qualified retirement plans must meet the qualification requirements of the Puerto Rico Internal Revenue Code and may also need to comply with U.S. Code requirements for participants who are residents of the U.S. On August 26, 2025, the Secretary of the Puerto Rico Treasury Department issued Administrative Determination No. 25-03 to outline the qualification rules related to the amendments from the Setting Every Community Up for Retirement Enhancement Act of 2022 Act) for these retirement plans.

Source: Mcvpr.com, September 2025

PR Amends Tax Rules That Impact Certain Distributions From Retirement Plans

On July 17, 2025, Governor Jenniffer Gonzalez Colon signed Act 65-2025, amending Section 1021.02 of the Puerto Rico Internal Revenue Code. The amendment exempts lump sum distributions from Puerto Rico qualified retirement plans from the Alternative Basic Tax, provided they are subject to the preferential tax rate of 10% under Section 1081.01(b) of the PR Code. This is a short review.

Source: Mcvpr.com, September 2025

Supreme Court Scrutiny Reshapes 401k Fee Litigation

The author suggests that a potential Supreme Court decision could either limit frivolous 401k lawsuits or increase their frequency. To defend against these challenges, fiduciaries should focus on three main strategies: maintaining thorough documentation linking costs to services, streamlining investment menu options to reduce easy targets, and employing a broader set of comparators that accurately reflect their plans. Proactive engagement in these areas will better prepare fiduciaries for the evolving legal landscape and help sustain participant trust. Delaying action is a significant risk; thus, it's vital to enhance documentation, simplify offerings where possible, and expand benchmarking immediately.

Source: Fiduciarynews.com, September 2025

2025 Retirement Analysis: Retirement Account Balances Reach New Record High, Rebounding From Dip in Q1

Fidelity Investments' Q2 2025 retirement analysis reveals record-high average balances for 401k, 403b, and IRA accounts. Factors contributing to this growth include consistent saving habits and strong stock market performance, despite earlier market volatility. Compared to Q2 2024, the average 401k balance rose by 8%, the 403b balance by 9%, and the IRA balance by 5%.

Source: Fidelity.com, September 2025

Relaxed Litigation Standards Continue to Shake Up ERISA's Careful Balancing Act

The recent court case Guenther v. BP is notable due to its ruling that a plan disclosure from 1989 was unclear, leading to a requirement for the entire plan to be reformed based on a participant-friendly interpretation. This decision imposes over $1 billion in costs on the plan sponsor, even though the 1989 disclosure had no actual impact on participants or their elections. The case highlights a troubling trend in litigation against retirement plan sponsors, where courts have increasingly relaxed legal standards, including the constitutional "standing" requirement and ERISA's statute of repose, resulting in significant liabilities for plans based on outdated disclosures.

Source: Encorefiduciary.com, September 2025

403b and the "Democratization" of Its Investments

Executive Order 14330 aims to "democratize" ERISA retirement plan investments by enabling participant-directed defined contribution plans to offer private equity interests as designated investment alternatives. This initiative has caused significant concern among ERISA plan fiduciaries, primarily due to challenges in establishing proper benchmarks to assess such investments, leading to fears of class action lawsuits and increased fiduciary insurance costs. In contrast, 403b fiduciaries face less uncertainty as existing regulations restrict their investment options to annuity contracts and mutual fund custodial accounts, which do not accommodate typical private equity investments, thus alleviating some of their concerns.

Source: Businessofbenefits.com, September 2025

A "Cheat Sheet" for Deciding Whether to Add Private Equity or Other Alternative Investments to Plans

In this post of the Plan Sponsor and Fiduciary 2.0 series, a cheat sheet is provided for fiduciaries considering the inclusion of private equity and alternative assets in 401k plans. The focus is primarily on private equity, which is currently the most relevant area, though the guidance can also apply to other alternative assets. The post does not advocate for or against the addition of such assets or dictate specific decisions for plan sponsors and fiduciaries.

Source: Bostonerisalaw.com, September 2025

Retirement Trends Advisors Can't Ignore: Research

Workplace savers are increasingly confident about their retirement prospects, but plan sponsors do not share the same optimism, highlighting a growing disconnect. This divide is influenced by economic uncertainty, longer lifespans, and insufficient portfolio growth, leading savers to save less while retirement costs continue to rise. Many savers express concerns about their future financial security, and retirees echo these worries. Advisors are positioned to help bridge this gap by addressing the differing perspectives.

Source: Blackrock.com, September 2025

Judge Rebuffs Plaintiffs in Forfeiture Reallocation Suit

In a recent ruling, a judge favored plan fiduciaries in a forfeiture reallocation lawsuit, dismissing claims of fiduciary breach without allowing the plaintiffs the chance to amend their arguments. The case was brought by Guadalupe Cano, a participant in the Home Depot FutureBuilder Plan, who sued Home Depot and its Administrative Committee for alleged breaches of ERISA fiduciary duties, violations of the anti-inurement provision, and engaging in prohibited transactions and self-dealing.

Source: Asppa-net.org, September 2025

Understanding Plan Participant Disclosures and Notices (Pt. 2 of 3)

As a plan sponsor, overseeing retirement plans like 401ks involves providing participants with essential notices throughout the year to ensure regulatory compliance and inform them of their rights and plan details. This process requires strong organization and effective internal communication to manage approximately 15 different types of notices accurately and timely. To assist in navigating this responsibility, Watkins Ross share best practices for issuing these participant notices.

Source: Watkinsross.com, September 2025*

Proposed Regulations Issued on Retirement Catch-Up Contributions

The SECURE 2.0 Act of 2022, which builds on the original SECURE Act of 2019, was enacted by Congress to promote retirement savings. Among its various provisions, the Act notably addresses "catch-up" contributions -- additional savings allowed for individuals nearing retirement age. Recently, the Treasury and the IRS released proposed regulations pertaining to three specific changes related to these catch-up contributions included in SECURE 2.0.

Source: Thetaxadviser.com, September 2025

Market Volatility Has Not Slowed 401k Growth

A report by the Investment Company Institute and the Employee Benefit Research Institute highlights significant growth in retirement savings from 2019 to 2023, despite market downturns in 2022. The study, which analyzed 2.7 million workers with 401k accounts, found that the average account balance increased from $82,274 in 2019 to $148,092 in 2023, representing a compound annual growth rate of 15.8%. The median balance also grew substantially, rising from $23,468 to $58,898, marking a 25.9% annualized increase. Notably, younger participants, especially those in their 20s and 30s, experienced the largest percentage increases, with 20-somethings seeing an impressive annualized growth rate of 56.1% due to contributions relative to their smaller starting balances.

Source: Planadviser.com, September 2025

Judge Backs Fiduciaries in Rebuff of Forfeiture Reallocation Suit

A court has ruled in favor of plan fiduciaries in a lawsuit involving the Home Depot FutureBuilder Plan, rejecting claims of fiduciary breach related to the handling of forfeited funds. Plaintiff Guadalupe Cano, representing a class of plan participants, argued that Home Depot failed to use forfeited funds to cover administrative expenses, which led to higher charges for participants. The judge also denied the plaintiffs the opportunity to amend their arguments.

Source: Napa-net.org, September 2025

Safe Harbor 401k Plan: 2025 Trends to Know

Safe Harbor 401k plans are increasingly popular among businesses as a reliable and advantageous retirement option. These plans allow employers to bypass certain IRS compliance tests while providing competitive benefits. With new incentives, features, and concerns about economic conditions and state regulations, Safe Harbor plans are viewed as a strategic tool that not only enhances employee engagement but also boosts business profitability, making them a preferred choice for many employers.

Source: Myubiquity.com, September 2025

Long-Term Part-Time Employees

The "long-term part-time employee" rules have been in effect for almost two years, and most retirement plan sponsors and service providers should be familiar with them by now. However, some may still be in the process of implementing these rules or reviewing their current practices. This summary aims to clarify the current LTPT requirements to ensure understanding among all parties involved.

Source: Legacyrsllc.com, September 2025

Sentara Healthcare and the Perils of Fiduciary Oversight

Stable value funds are supposed to be the "safe harbor" in a defined contribution plan, the place where risk-averse participants can find steady returns. Plaintiffs have accused the GIBC of failing to provide the expected steady returns from its stable value funds, claiming that its performance significantly lagged behind similar products at comparable risk levels. This accusation is serious because under ERISA, the focus is on maintaining a prudent investment process rather than ensuring the highest returns. The court determined that if the investment committee did not adequately monitor the funds or seek competitive bids, the case was valid enough to proceed.

Source: Jdsupra.com, September 2025

2025 Statistics for 401k Plan Benchmarking

Benchmarking employee benefits plans allows companies to evaluate their offerings against others, revealing trends in recruiting and retention while highlighting areas for improvement in plan design. This process goes beyond fiduciary concerns, encompassing aspects like deferrals, participation rates, and overall competitiveness of the 401k plan. The article includes links to various benchmarking statistics from 2025 surveys to aid in this evaluation.

Source: Ifebp.org, September 2025

403b Plan Participants Benefit From Employer Contributions and Diverse Investment Choices

A report by the Investment Company Institute and ISS Market Intelligence reveals that a majority of employees in large ERISA 403b plans benefit from employer contributions, enhancing their long-term retirement security. According to the 2022 ICI/ISS MI Defined Contribution Plan Profile, 85% of large ERISA 403b plans, which cover most participants, received employer contributions in 2022. Employer contributions have consistently been a significant source of funding for these plans over the past decade. Among plans with employer contributions, 33% offered automatic contributions, 56% provided simple matches, and 13% included both features, while 23% featured tiered matches and other contribution types.

Source: Ici.org, September 2025

What Does Consistent Participation in 401k Plans Generate? Changes in 401k Plan Account Balances and Asset Allocations, 2019-2023

Policymakers, plan sponsors, and individual retirement savers are focused on understanding the wealth-building potential of 401k plans, crucial to the US retirement system. To analyze the accumulation of retirement assets effectively, it is essential to study the accounts of consistent participants—those who have maintained their accounts over the entire study period—rather than relying on changing samples, which can distort findings. This paper updates a longitudinal analysis of 401k participants using data from the EBRI/ICI 401k database, emphasizing the importance of consistent samples to accurately measure changes in account balances and asset allocations over time.

Source: Ebri.org, September 2025

A Retirement Plan Fiduciary's Glossary: Key Terms to Understand

The author contends that it is a fiduciary's duty to seek understanding, enabling them to feel confident and assured in their decision-making. To facilitate this, they have compiled a glossary of terms commonly used in retirement plan committee meetings. This resource aims to enhance your knowledge of the plan and empower you to participate effectively in discussions with your advisor.

Source: Conradsiegel.com, September 2025

The Power of Purpose in Retirement

Retirement is often envisioned as a time for relaxation and enjoying hobbies, but it can also lead to a significant life adjustment that affects one's identity, habits, and health. Many retirees struggle with a lack of purpose and social connection, which can increase the risk of health issues, including heart disease, by up to 40%. Without a meaningful plan for spending their time, retirees may face unexpected emotional challenges during this transition.

Source: Conradsiegel.com, September 2025

Did Empower's Cross-Selling Cross the Line? Why Fiduciaries Should Monitor Recordkeeper Marketing

A recent complaint by the Schlichter law firm alleges that Empower has overstepped ethical boundaries by misusing participant contact information, potentially for marketing products rather than solely for assistance and education. Although plan sponsors are not directly named in the lawsuit, the plaintiffs argue that these sponsors have a fiduciary duty to monitor Empower's practices and ensure compliance with regulations regarding cross-selling and revenue generation. This situation raises concerns for plan sponsors and committees, as they may need to enhance their monitoring of service providers to ensure compliance and protect against potential liabilities related to participant privacy and fiduciary responsibilities.

Source: Cohenbuckmann.com, September 2025

New SEC Staff Guidance Furthering Policies of Trump DC Plan Executive Order

On August 7, President Trump signed Executive Order 14330, aimed at increasing access to alternative assets for investors in 401k plans. The order directs the SEC to explore ways to facilitate this access, which may include revising regulations related to accredited investor and qualified purchaser status. Closed-End Fund shares could also be included as investment options in defined-contribution retirement plans, allowing participants to gain significant indirect investment in private funds.

Source: Carltonfields.com, September 2025

Inherited 401k rules: What Beneficiaries Need to Know

When you inherit a 401k from a loved one, understanding how to manage it can help you honor their memory effectively. Your options for the account depend on your relationship with the deceased, as different rules apply. Being aware of the regulations surrounding inherited 401ks can help you avoid unnecessary taxes and penalties. If the 10-year rule applies to your situation, it's important to stay informed about key deadlines to maximize the benefit from the inheritance.

Source: Bankrate.com, September 2025

"Sandwich Generation" Neglecting Retirement Savings: Study

The 2025 Annual Retirement Study by the Allianz Center for the Future of Retirement reveals that many Americans, particularly those in the "sandwich generation" -- those with young children and aging parents -- are struggling to meet their retirement and financial goals. About 25% of Americans belong to this group, with 46% of millennials and 18% of Gen Xers affected. A significant 78% of these individuals provide various forms of support to their parents. Kelly LaVigne from Allianz Life highlights the challenges of balancing caregiving responsibilities and urges individuals to prioritize their own retirement savings to avoid long-term financial consequences.

Source: Allianzlife.com, September 2025

Canada's Financial Crisis: Five Retirement Benefits Trends and Strategies for Organizational Resilience

Organizational resilience is crucial for large organizations, particularly in Canada, where financial and retirement crises are increasingly affecting employees. Many Canadians experience financial stress, which negatively impacts productivity, with over half reporting it influences their job performance and nearly 50% stating it disrupts their sleep. Financial issues are considered the primary source of stress for 42% of Canadians, surpassing health and work concerns. Furthermore, a survey indicated that 91% of respondents believe financial benefits, like retirement savings plans, significantly affect their commitment to their employer.

Source: Alight.com, September 2025

A New Look at Designing ERISA Retirement Plans

In recent decades, private-sector employers have moved away from traditional DB plans that provided guaranteed lifetime income, opting instead for DC plans that focus on asset accumulation. This transition has reduced employer liabilities but left many retirees struggling to convert their savings into a reliable income. Although retirees value lifetime income options, attempts to integrate insured income products into DC plans have faced challenges. As workforce demographics and retirement expectations change, there is a need for new retirement plan designs that provide predictable lifetime income for retirees while managing risks for employers. However, the ERISA DB-DC classification requirement can hinder innovative plan designs, especially when a plan doesn't fit neatly into either category.

Source: Actuary.org, September 2025

Catch-Up Chaos: Guidance for the New Roth 401k Rule No One's Really Ready For

Effective January 1, 2026, SECURE Act 2.0 mandates that employees aged 50 and older, who earned $145,000 or more in FICA wages in 2025, must make all catch-up contributions as post-tax Roth contributions. This provision is one of the most significant aspects of the Act; however, with only four months remaining, many employers remain unclear about its implementation and how to communicate the changes to their employees. Failure to manage compliance effectively could lead to unforeseen audit and legal risks. To assist with this transition, here is a comprehensive step-by-step guide.

Source: Wealthadvisors.com, September 2025

RTX Latest Target of Forfeiture Fiduciary Breach Claims

A new lawsuit has been filed against RTX Corp., previously known as Raytheon Technologies Corp., concerning its 401k plan. The plaintiffs, Melissa Jacob and Thomas Miller, along with other participants and beneficiaries, allege violations of ERISA. They accuse the defendants of not adhering to plan documents, breaching fiduciary duties of loyalty and prudence, utilizing plan assets for the employers' benefit, mismanaging plan assets for personal interests, and facilitating prohibited transactions. The case is identified as Jacob v. RTX Corp. in the Eastern District of Virginia.

Source: Napa-net.org, September 2025*

Revisiting the State of the Law in ERISA Forfeitures Cases

On July 14, 2025, a Legal Update was released that reviewed recent developments in ongoing ERISA forfeiture lawsuits, highlighting new motion to dismiss rulings and an increasing number of pending appeals. This new update notes that, despite a focus on recent legal changes, there has been a surge in new forfeiture lawsuits, with at least seven additional cases filed, bringing the total to nearly 70. An updated list of 22 motion to dismiss rulings is provided and discussed in detail.

Source: Mayerbrown.com, September 2025

Lessons From Alternative Mutual Funds for 401k Advisors

A Morningstar report by Jeffrey Ptak examines the performance of mutual funds in the private market and its implications for 401k investors. The report highlights a significant decline in alternative mutual funds since 2015, with only 341 remaining out of 1,345, resulting in a 75% mortality rate over the past decade. While alternative asset managers are promoting private market investments for retirement plans, Ptak cautions about the potential drawbacks of offering these funds to 401k investors and provides recommendations for retirement plan advisors.

Source: 401kspecialistmag.com, September 2025

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