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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DOL Isn't Finished With Amicus Briefs

After recently commenting on one of the numerous forfeiture reallocation lawsuits, the Labor Department is now seeking to become involved in another case. They have requested an extension to submit an amicus brief concerning a forfeiture reallocation lawsuit involving Honeywell International. In this case, the fiduciary defendants have successfully won their motion to dismiss, on two occasions, most recently last July, and this time with prejudice.

Source: Psca.org, December 2025

When a Recordkeeper Switch Becomes a Fiduciary Freefall

If you're a plan sponsor reading this, you might be thinking, "I’ll never find myself in that situation." However, the individual in question could very well be you. The case of Rick Case Enterprises -- a Florida automotive group that reportedly lost around 9% of its 401k assets during a recordkeeper conversion -- serves as a classic warning about the consequences of lax oversight. Here’s how this cautionary tale unfolded.

Source: Jdsupra.com, December 2025

LifePoint Health's Motion to Dismiss 401k Class Action Denied

Six former and current employees filed a lawsuit against LifePoint Health on behalf of all individuals who participated in the company's 401k plan since August 15, 2018. The plaintiffs allege that LifePoint, its Board of Directors, and other fiduciaries breached their duties under ERISA by mismanaging the plan, failing to properly monitor it, and charging excessive fees. A federal district court judge in Tennessee has denied LifePoint's motion to dismiss the case, allowing the claims to proceed regarding the alleged improper use of forfeited 401k contributions.

Source: Hallbenefitslaw.comg, December 2025

Former Partner Files ERISA Class Action Against Husch Blackwell for Delayed 401k Contributions

A former equity partner at Husch Blackwell LLP has initiated a proposed class action lawsuit against the law firm, claiming it unlawfully withheld and misused employee 401k contributions. The case, filed in the U.S. District Court for the Western District of Missouri, alleges violations of ERISA for holding employee salary deferrals and using them to cover operational costs. The former partner argues that this practice deprived employees of potential investment growth and jeopardized the retirement plan. Husch Blackwell operates a 401k plan for about 400 participants, primarily funded through paycheck deductions.

Source: Hallbenefitslaw.comg, December 2025

Roth Catch-Up Contributions: A Practical Deep Dive

Starting with plan years that begin on January 1, 2026, SECURE 2.0 introduces significant changes to the administration of catch-up contributions for specific higher-paid participants. Notably, plans are now required to implement mandatory Roth treatment for catch-up contributions made by HPPs. These new regulations present additional compliance, payroll, and communication challenges that plan sponsors should proactively address before the effective date. This article outlines the final rules and emphasizes key practical considerations for plan sponsors and administrators.

Source: Eisneramper.com, December 2025

How to Prepare for 401k Compliance Testing: Five Key Areas

As the new year begins, business owners should focus on organizing their retirement plan reporting. It's time to inform your third-party administrator about any business changes from the previous year and provide complete employee census data for 401k compliance testing. While the information requests may seem repetitive, it's crucial to answer them thoroughly. Incomplete or incorrect data can impact test results, potentially leading to complicated corrections and penalties. Ensure your retirement plan is secure and compliant by providing your TPA with the necessary information to avoid issues during an audit.

Source: Watkinsross.com, December 2025

Bringing Alternatives to DC Plan Participants Tops 2026 Regulatory Priorities

During the first year of Trump's second term, the administration focused on key appointments and a government shutdown. Looking ahead, experts expect a busy year for the SEC and the DOL, particularly in expanding access to private markets. Trump signed an executive order to "democratize access to alternative assets" for 401k plans, including private equity and digital assets. The DOL is tasked with creating guidance by February 3, 2025, to amend current policies and address litigation concerns under ERISA. Despite the legality of including alternative assets in retirement plans, plan sponsors remain cautious due to fears of litigation and issues regarding fees, liquidity, and transparency.

Source: Wagnerlawgroup.com, December 2025

Four Big ERISA Litigation Developments From 2025's 2nd Half

The Eleventh Circuit has indicated a potential shift in its precedent, which could facilitate access to the courts for federal benefits lawsuits. In contrast, the Second Circuit dismissed a challenge regarding a union pension plan's focus on private equity investments. Here's a recap of these developments, along with two other notable updates in ERISA litigation from the latter half of 2025 that benefits attorneys should keep on their radar.

Source: Wagnerlawgroup.com, December 2025

We've Reached the Tipping Point for 401k Retirement Plans

Beau Adams, president of American Trust Retirement, anticipates a significant shift in financial advising as retirees transition from saving to withdrawing funds. With over 4 million people in the U.S. turning 65 this year -- more than 11,000 daily -- and a projected 80% of those aged 65 or older will be leaving the workforce. By 2030, one in five Americans is expected to be over 65, signaling a crucial turning point for the retirement planning industry.

Source: Planadviser.com, December 2025

New House Bill Revives Push for Automatic Retirement Accounts for Uncovered Workers

Proposed legislation requires employers with at least 10 employees to automatically enroll their workers in individual retirement accounts if they do not already offer a retirement plan. Representative Richard Neal of Massachusetts reintroduced this bill, aimed at providing retirement savings options for gig workers and independent contractors who lack access to defined contribution plans.

Source: Planadviser.com, December 2025

Preparing for 2026 ERISA Plan Compliance

The compliance calendar serves as a tool for plan fiduciaries to track important due dates for retirement plans, especially considering annual updates and changes in regulations. In 2025, new regulatory requirements emerged, including updates to contribution limits, covered compensation tables, and final regulations for Roth catch-up contributions. This calendar provided is designed to alert fiduciaries of significant regulatory dates for 2026 for plans governed by ERISA. However, it does not cover all compliance obligations or due dates and assumes the plan operates on a calendar year basis.

Source: Planadviser.com, December 2025

401k Auto-Features Aren't Set-It-and-Forget-It

Auto-enrollment and auto-escalation are popular tools in the retirement plan industry, appreciated by plan sponsors for simplifying participant engagement and increasing savings rates. While they may give an impression of effortless progress, relying on these features without active management can lead to serious fiduciary risks. Despite their effectiveness in enhancing participation and outcomes, seasoned plan sponsors recognize that retirement plans require continuous oversight and cannot be treated as entirely self-sufficient solutions.

Source: Jdsupra.com, December 2025

72(t), SEPP Distributions From a 401k

Answers this question. "I want to take 72(t) payments from my 401k plan, but I have received conflicting information as to whether this can be done from a retirement account that is not an IRA. What is the right answer?"

Source: Iradictionary.com, December 2025

SECURE 2.0 Incentivizes Plan Sponsors to Promptly Correct Automatic Enrollment and Automatic Escalation Errors

This article outlines the requirements that plan sponsors need to adhere to to employ the safe harbor correction method for automatic enrollment and automatic escalation errors. It provides actionable steps that plan sponsors can take immediately to implement the safe harbor, while also reminding them that the capacity for self-correcting errors relies on having established compliance practices and procedures within the plan.

Source: Verrill-law.com, December 2025

How to Talk to Participants About Cybersecurity

As we approach 2026, cybersecurity in retirement planning is emphasized as a shared responsibility among plan sponsors, advisers, recordkeepers, and participants. Sastry Durvasula from TIAA stresses that preventing fraud is a collective effort, while Luke Delorme from Tableaux Wealth highlights the individual responsibility in safeguarding assets. To better inform participants, Durvasula insists on the importance of communicating the evolving nature of digital scams, which now include not just common phishing emails but also sophisticated AI-generated deepfake scams that can deceive even savvy individuals.

Source: Plansponsor.com, December 2025*

Government Charts New Course in ERISA Retirement Space

On December 9, 2025, the U.S. Solicitor General and the DOL submitted an amicus brief in the case of Parker-Hannifin Corporation, et al. v. Johnson, et al., urging the Supreme Court to review Parker-Hannifin's petition for certiorari. The petition challenges the Sixth Circuit's decision, which stated that a meaningful benchmark is not necessary to plead a fiduciary breach claim under ERISA concerning underperforming, high-fee investments in a 401k plan. The government's brief contends that the Sixth Circuit's ruling is incorrect and highlights two main errors in the decision.

Source: Millerchevalier.com, December 2025

Alternative Investments in 401k Plans: Executive Order Implications and Key Fiduciary Considerations

Financial professionals are increasingly supporting the incorporation of alternative investments into modern portfolios, but there has been uncertainty surrounding their integration into 401k and other defined contribution plans. Recently, a White House executive action has indicated a shift towards a more favorable regulatory environment for Investment Solutions that include alternative investments. This article examines the evolving regulatory landscape and outlines key considerations for Plan fiduciaries seeking to offer their participants access to alternative investments through these Solutions.

Source: Wagnerlawgroup.com, December 2025

A Hidden Trend Is Changing 401k Plans. Here's What It Means for Investors

Many sponsors of smaller 401k plans are being guided toward integrating their recordkeeper's stable-value fund into these target-date strategies, effectively lowering administrative costs. While this reduction in fees is beneficial for participants, the influence of cost-sharing arrangements on target-date managers' allocation decisions can lead to significant trade-offs. The discussion here delves into the factors driving this trend, its prevalence, and the implications of these trade-offs for investors.

Source: Morningstar.com, December 2025

CAPTRUST's 2026 Retirement Plan Industry Predictions

As we approach 2026, plan sponsors must navigate a changing environment characterized by new regulations, fiduciary risks, evolving plan designs, and shifting participant expectations. This period reflects ongoing change, intensified by urgency. The discussion here highlights key trends expected to influence retirement plans in the coming year.

Source: Captrust.com, December 2025

Do You Have an RFP Template for a 401k | 403b Plan Audit?

In educational seminars, attendees often inquire about a template for a retirement plan audit Request for Proposal. After emphasizing the importance of selecting a qualified plan auditor and outlining essential items and criteria for evaluation, the author provides an RFP outline that highlights key components of an effective retirement plan audit. Additionally, a customizable RFP template is provided to accommodate the specific requirements of each plan.

Source: Belfint.com, December 2025

Participants' Credit Card Debt Reduces Retirement Funding

A study by J.P. Morgan Asset Management reveals that nearly half of retirement plan participants are burdened by credit card debt, leading many to take loans against their future savings. The "Retirement by the Numbers" report analyzed data from 16,000 defined contribution plans and over 12 million participants, highlighting the correlation between high credit card balances and lower contribution rates and account balances. This debt impacts retirement readiness, decreasing it by up to 40% for older participants.

Source: 401kspecialistmag.com, December 2025

DOL Expects to Release Guidance on Paper Statements, E-Disclosures

The DOL is set to issue guidance that may change how retirement plan participants receive benefit statements. Following the SECURE 2.0 Act of 2022, the proposed regulations will mandate that defined contribution plans provide at least one paper benefit statement annually, unless participants opt out. Additionally, defined benefit plans will need to provide paper statements at least once every three years. While electronic delivery will remain the primary method of communication, this move restores a guaranteed role for paper statements.

Source: Plansponsor.com, December 2025

Recordkeepers Prepare for Next Year's "Roth-Only" Catch-Up

Starting in 2026, individuals aged 50 and older who earned at least $150,000 in the previous year will be required to make catch-up contributions to their 401k, 403b, and 457b plans as Roth contributions. While this change may increase immediate tax revenue for the federal government, it introduces significant complexity for recordkeeping firms, as they navigate a new compliance landscape created by these requirements. Plan sponsors and payroll providers will likely take the initial steps to adapt, but the burden of compliance will increasingly fall on recordkeepers.

Source: Planadviser.com, December 2025

US Executive Order Targets Proxy Advisors and ESG-Related Voting Practices

On December 11, President Trump issued an executive order titled "Protecting American Investors from Foreign-Owned and Politically-Motivated Proxy Advisors." The order expresses concern that major proxy advisory firms have excessive influence over corporate governance, shareholder proposals, and investment practices, which they allegedly use to promote politically driven agendas regarding diversity, equity, and inclusion, as well as environmental, social, and governance issues. The executive order seeks to enhance federal oversight of the proxy advisor industry.

Source: Morganlewis.com, December 2025

Required Amendments List for Qualified Plans and 403b Plans

On December 4, 2025, the U.S. Treasury Department and IRS released Notice 2025-60, which includes the Required Amendments List for 2025 concerning qualified defined benefit and defined contribution plans, as well as 403b plans. This RA List details the amendments that must be made in response to legislative and regulatory changes applicable to both individually designed and pre-approved plans. Each year's RA List consists of updates for which the IRS has issued guidance or does not anticipate needing guidance, and it outlines compliance requirements for the calendar year in which it is published.

Source: Milliman.com, December 2025

The Silent Killer of Retirement Plans: Compensation Definitions

In the retirement plan industry, there is a tendency to focus on high-profile issues like lawsuits, excessive fee claims, and fiduciary scandals. However, the true danger to most 401k plans lies in the often-overlooked aspect of compensation definition. This subtle yet significant factor can pose greater risks than fees, investment choices, or other flashy concerns. While it may not be as dramatic as a blockbuster movie, understanding this element is crucial for maintaining a healthy retirement plan and avoiding disaster.

Source: Jdsupra.com, December 2025

Federal Judge Dismisses 401k Lawsuit Against AutoZone

A federal court judge in Tennessee ruled in favor of AutoZone and its investment committee in an ERISA case regarding the company's 401k plan. The case, Iannone et al. v. AutoZone Inc., concluded that plan participants did not prove that AutoZone mismanaged its investment options. The judge found that AutoZone's investment committee met quarterly, regularly monitored funds, and made significant changes to lower fees and update default investment options. Consequently, the judge determined that AutoZone did not breach its fiduciary duties under ERISA.

Source: Hallbenefitslaw.com, December 2025

401k Christmas Wish List

The "401k Christmas wish list" imagines what experts in retirement planning would desire to improve the 401k landscape. Instead of material gifts, the focus is on policies, plan designs, and behavioral habits that can shape retirement outcomes over time. The wish list emerges as a coherent collection of wishes emphasizing clarity, access, consistency, and an understanding of human behavior in relation to retirement savings.

Source: Fiduciarynews.com, December 2025

AI Adoption Redefines Retirement Experience Rankings as Fidelity and TIAA Stay on Top

According to Corporate Insight's latest benchmark report, firms that are investing in AI technology are experiencing substantial improvements in their digital services. Kara Sostar, a retirement research manager at Corporate Insight, noted that early adopters of AI are seeing tangible benefits, particularly in areas like search, virtual assistance, and personalized content delivery. This year, companies that strategically invested in these digital features have gained a competitive edge. Fidelity and TIAA were highlighted as leading examples, maintaining their top positions from the previous year's study.

Source: Corporateinsight.com, December 2025

How Do State Auto-IRAs Affect Adoption of Employer Plans?

According to this paper, State auto-IRA initiatives have expanded opportunities for many additional workers to save through payroll deductions in two ways: by participating in the newly established auto-IRAs and by increasing the adoption of employer-sponsored retirement plans. The paper is structured as follows: The first section offers an overview of state auto-IRA programs. The second section outlines the data and methodology employed to assess the impact of these programs on the proportion of employers providing their own retirement plans. The third section presents the findings of the analysis. Finally, the concluding section highlights that state auto-IRAs have encouraged a greater number of employers to establish their own retirement offerings.

Source: Bc.edu, December 2025

Employee Participation in 403b Plans Jumps for 2024

Research from the Plan Sponsor Council of America indicates a significant increase in employee participation and the adoption of automatic features in 403b plans for 2024. The survey found that the percentage of eligible employees with an account balance rose by five points to 85.1%. Additionally, contributions from employees increased to 78.3%, up from 73.7% the previous year. Employees continued to defer an average of 6.7% of their gross annual pay, while employer contributions slightly increased to an average of 5.4%, resulting in a combined savings rate of 12.1%.

Source: 401kspecialistmag.com, December 2025

Alternatives Gain Ground Among Plan Advisors After Federal Policy Shift

New research from Escalent's Cogent Syndicated report, titled "2025 Retirement Plan Advisor Trends," reveals that one in four defined contribution plan advisors are likely to recommend alternative investments for plan lineups, while one in ten are currently doing so. This shift towards alternative investments follows the DOL's decision in August 2025 to reverse its prior position on their suitability in 401k and other workplace retirement plans. The study aims to provide insights for retirement plan providers and investment managers regarding the views and preferences of financial advisors in the employer-sponsored retirement plan space.

Source: 401kspecialistmag.com, December 2025

2025 Form 5500 Informational Copies Released by DOL, IRS

The DOL announced the release of informational copies of the 2025 Form 5500 and related forms online, in collaboration with the IRS and the Pension Benefit Guaranty Corporation. This announcement occurred approximately 20 days later than the previous year. Federal regulations require pension and welfare benefit plans to file annual reports detailing their financial condition, investments, and operations using the Form 5500 series.

Source: 401kspecialistmag.com, December 2025

The DOL and DOJ Take Steps to Support ERISA Fiduciary Defendants at the Supreme Court

On December 9, 2025, the Solicitor General submitted briefs to the Supreme Court regarding two significant ERISA class action cases: Pizarro v. The Home Depot, Inc., and Parker-Hannifin Corp. v. Johnson. These cases address differing lower court opinions on the burden of proof for plaintiffs claiming breaches of ERISA's fiduciary duties. The SG urged the Court to adopt more favorable legal standards for ERISA plan fiduciaries, which would increase the chances of the Court hearing the cases. This move reflects the DOL's growing willingness to address and reduce abusive ERISA litigation that raises plan administration costs for sponsors.

Source: Groom.com, December 2025*

Roth Catch-Up Mandate Compliance and Deemed Election Examples

Starting January 1, 2026, High Earners (also referred to as Highly Paid Individuals) who are eligible for catch-up contributions must do so on a Roth basis. Before discussing the administration of this new requirement, it's important to clarify the compensation thresholds that define a High Earner and what constitutes a catch-up contribution.

Source: Belfint.com, December 2025

403b Plans Continue Rapid Modernization: Survey

PSCA's 2024 survey of 303 nonprofits shows significant modernization in 403b plans, with sharp increases in employee participation, Roth options, and automated features like auto-enrollment and escalation. SECURE Acts 1.0 and 2.0 accelerated these changes, making 403b plans resemble 401ks and driving record savings rates. Article contains survey details.

Source: Psca.org, December 2025

DOL Shifts Position on ERISA Litigation Burden of Proof

The U.S. Supreme Court asked the Labor Department to weigh in on an ERISA case regarding the burden of proof. In its amicus brief, the Department reversed its prior stance, stating that after reviewing the issue, the burden of proving causation should rest with ERISA plaintiffs.

Source: Psca.org, December 2025

DC Plan Loans Correspond to Health Care Spending: EBRI

An Employee Benefits Research Institute brief reports that participants who took 401k loans in 2021–2022 were likely using them to cover rising health care costs. Among households with a new loan, 51% increased health care spending by at least 10%, compared to 47.8% of households without a new loan.

Source: Planadviser.com, December 2025

The DOL Audit: How Plan Sponsors Prepare and What to Expect

DOL audits are rarely welcomed by retirement and benefit plan sponsors. However, these audits serve an important purpose: ensuring that plans such as 401ks, 403bs, and pension programs are properly administered and comply with ERISA and tax regulations. Under ERISA, the DOL enforces strict fiduciary and reporting standards. This guide explores how sponsors can effectively prepare for an audit.

Source: Planpilot.com, December 2025

401k Investing: ESG, Crypto and Fiduciary Risks

The increasingly politicized environment has made 401k investment guidance unpredictable, with regulations shifting whenever a new administration takes office. This constant change creates uncertainty and imposes costly administrative burdens on plan sponsors and fiduciaries striving to remain compliant. So, what's the best path forward? This article explores practical strategies for plan sponsors to navigate these challenges.

Source: Phillipslytle.com, December 2025

The State of America's Small Business Retirement Readiness in 2025

The retirement landscape is evolving rapidly, and many employers are struggling to keep pace with new regulations and rising employee expectations. Within the data lies a significant opportunity to enhance benefits, improve retention, leverage tax advantages, and provide employees with greater financial security. This uncertainty reveals a massive opportunity. Small businesses need clearer support to turn good intentions into readiness.

Source: Myubiquity.com, December 2025

Summary of 2026 Benefit-Related Cost-of-Living Adjustments

Federal agencies -- including the IRS, PBGC, SSA, and CMS -- have released 2026 cost-of-living adjustments for retirement, health, and fringe benefit plans, as well as Medicare, Social Security, and SSI. The accompanying table provides qualified retirement plan limits for 2024–2026, including rounded IRC values and Mercer's unrounded 2026 projections.

Source: Mercer.com, December 2025

The Silence of the Minutes

The strength of a fiduciary process is best reflected in detailed meeting minutes, not just the investment lineup. Minimalist records like "Reviewed funds. No changes." create legal risk because, under ERISA, undocumented actions are treated as if they never happened. Plaintiffs' attorneys will exploit such gaps.

Source: Jdsupra.com, December 2025

Plaintiffs Drop Appeal of Home Depot ERISA Case

Plaintiffs dropped their appeal of a ruling that The Home Depot did not breach fiduciary duties regarding retirement plan forfeitures. U.S. District Judge Tiffany R. Johnson dismissed the case (Guadalupe Cano v. The Home Depot Inc.) with prejudice, preventing the plaintiffs from refiling or amending the complaint.

Source: Planadviser.com, December 2025

401k Forfeiture Case Against Northrup Grumman Dismissed

Northrop Grumman won dismissal of a lawsuit claiming it misused forfeited retirement plan funds to reduce employer contributions. In Garner et al. v. Northrop Grumman Corp. et al., U.S. Senior District Judge Anthony Trenga of the Eastern District of Virginia ruled that the plan documents allowed the company to apply forfeiture funds at its discretion.

Source: Planadviser.com, December 2025

Lawmakers Reintroduce Bill to Permit Roth IRA Rollovers

Lawmakers have reintroduced the bipartisan Retirement Rollover Flexibility Act (H.R. 6450 and S. 3352), which would allow workers to roll over Roth IRA savings into workplace-based Roth plans such as Roth 401k, 403b, or 457b. Currently, this type of rollover is prohibited. The bill aims to simplify retirement savings by enabling account consolidation and reducing the risk of early withdrawals.

Source: Napa-net.org, December 2025

Lifetime Income Products: Key Takeaways From the Department of Labor's Advisory Opinion

The DOL's Advisory Opinion 2025-04A clarifies that managed account solutions incorporating lifetime income products can qualify as Qualified Default Investment Alternatives under ERISA, provided they meet transferability and other regulatory requirements. Specifically, such solutions remain eligible even when offered through a variable annuity contract with a guaranteed lifetime withdrawal benefit.

Source: Mayerbrown.com, December 2025

Benefits: 2025 Highlights and 2026 Outlook

Employers across the United States experienced significant legislative, regulatory, and judicial changes in the benefits landscape throughout 2025, developments that will shape plan sponsor and fiduciary strategies in 2026. This year brought notable advancements in employee benefits, and this article highlights the key trends from 2025 while offering a forward-looking perspective for the year ahead.

Source: Mayerbrown.com, December 2025

When the Loan Defaults Come Home: A Fiduciary Wake-Up Call

Securian Financial is partnering with Custodia Financial to expand the Retirement Loan Protection (RLP) program within more in-plan offerings. This move addresses a long-standing issue where participants take 401k loans and risk severe financial setbacks if they cannot repay, signaling growing industry recognition of this problem. The article recaps the issue and explains why it matters.

Source: Jdsupra.com, December 2025

Fiduciary Gamechanger: The Cornell 403b Decision and What It Means for You

The Supreme Court's unanimous decision in Cunningham v. Cornell University marks a significant shift for retirement plan sponsors and fiduciaries. The case involved allegations that Cornell's 403b plans paid excessive fees and engaged in prohibited transactions under ERISA by contracting with service providers considered "parties-in-interest." The ruling means more lawsuits will survive early dismissal, leading to costly discovery and litigation. As a consequence, plan sponsors must be more diligent in compliance and documentation.

Source: Jdsupra.com, December 2025

Lack of Consequences for Small Employers With Poor 401k Plans

Small employer 401k plans often fall into a regulatory gap. While mistakes in payroll taxes or workplace safety trigger immediate enforcement, poorly designed 401k plans -- with high fees, limited investment options, and little education -- can persist for years without consequences. For many small businesses, offering a 401k is treated as a checkbox, and the plan's quality is rarely scrutinized unless a major issue or lawsuit arises.

Source: Fiduciarynews.com, December 2025

Locating Missing Participants: Pro Tips

Missing or unresponsive retirement plan participants create significant challenges for plan sponsors. Based on experience as IRA administrators, 401k sponsors, and search service providers, the article emphasizes that most issues can be resolved through a structured approach combining diligence, technology, documentation, and preventive measures. It introduces practical, field-tested tips for locating missing participants and maintaining accurate participant data.

Source: Asppa-net.org, December 2025

How Did the IRS Change the Required Amendments List for 2025?

The IRS has released the 2025 Required Amendments List in Notice 2025-60. It applies to individually designed plans under IRC Sections 401(a) and 403(b), as well as pre-approved plans for interim amendments. Compared to the 2024 RA List, the 2025 changes are generally less extensive.

Source: Asppa-net.org, December 2025

Why the Stated Match Formula Is the Most Dangerous Line in Your 401k Plan Document

The matching formula in a retirement plan document, often seen as simple and predictable, can actually be a major source of compliance problems. While employers may assume it's straightforward and "set it and forget it," in reality, it frequently causes operational failures and costly corrective actions, making it one of the most common pitfalls for plan sponsors.

Source: Therosenbaumlawfirm.com, December 2025*

IRIC Forecasts Retirement Trends to Watch in 2026

The Institutional Retirement Income Council forecasts that next year will see a significant shift toward broader adoption of in-plan retirement income solutions, driven by growing interest in retirement income innovation. In 2025, the industry focused on laying the groundwork through options like target-date funds, annuity marketplaces, systematic withdrawal programs, managed accounts with income features, and middleware integrations. By 2026, consultants and advisers are expected to implement standardized fiduciary evaluation frameworks to help plan sponsors assess, compare, and adopt these features.

Source: Plansponsor.com, December 2025

Joint Amicus Brief Backs Dismissal of 401k Forfeiture Complaint Against Wells Fargo

Several major interest groups -- including the ERISA Industry Committee, U.S. Chamber of Commerce, and National Retail Federation -- filed a joint amicus brief with the U.S. 8th Circuit Court of Appeals. They urged the court to uphold a lower court's June ruling that dismissed a 401k forfeiture complaint against Wells Fargo. The original decision, issued by U.S. District Judge John Tunheim, found that the plaintiff, Thomas Matula Jr., a former employee and plan participant, failed to state a valid claim. Matula appealed dismissal in July.

Source: Planadviser.com, December 2025

How the Contribution Limits Interact When an Employer Sponsors Multiple Retirement Plans

Annually, the IRS releases updated indexed limits and cost-of-living adjustments for the upcoming tax year, affecting various provisions of the Internal Revenue Code, including income tax deduction rates and retirement plan contribution limits. This article explains how the updated maximum dollar limits apply across multiple defined contribution retirement plans.

Source: Icemiller.com, December 2025

Recent Wins for Plan Sponsors in Response to Plan Forfeitures Litigation

Recent lawsuits have challenged 401k plan sponsors over using plan forfeitures to offset future employer contributions, even when allowed by plan documents. A California district court ruled in favor of the sponsor, stating such claims would add benefits not provided under the plan and conflict with ERISA's established practice of permitting forfeitures under plan terms. Similar rulings in Mississippi and Texas also supported employers.

Source: Haynesboone.com, December 2025

"Pension Predators" Hearing Targets Abusive ERISA Lawsuits

A House Education and Workforce Subcommittee held a hearing titled "Pension Predators: Stopping Class Action Abuse Against Workers’ Retirement." Chairman Rick Allen emphasized the need to protect workers' retirement savings and employers from what he called baseless, predatory class action lawsuits. He highlighted that ERISA safeguards benefits for over 155 million Americans, with plans collectively holding more than $14 trillion to ensure financial security.

Source: 401kspecialistmag.com, December 2025

INVEST Act in House Could Finally Be Vehicle to Allow CITs in 403bs

After years of delays, legislation allowing 403b retirement plans to use collective investment trusts is close to approval. The House of Representatives is expected to vote on the bipartisan INVEST Act next week. This package combines 20 previously passed bills, including the Retirement Fairness for Charities and Educational Institutions Act, which would amend securities laws to permit CITs and certain insurance accounts in 403b plans, aligning them with 401k rules. The Act was introduced on Dec. 2 by key lawmakers to reduce regulatory barriers, support small businesses, and expand investment options.

Source: 401kspecialistmag.com, December 2025

To Deem or Not to Deem: Navigating Deemed Roth Catch-Up Elections – A Practical Guide

As employers, payroll providers, recordkeepers, and plan administrators prepare for the 2026 Roth Catch-up Rule deadline, an important decision is whether to adopt the optional "deemed Roth election" provision. This provision allows employers to automatically classify catch-up contributions from high earners as Roth contributions once they reach the annual elective deferral limit. These FAQs explain the scope and application of the deemed Roth election provision, outlining its potential benefits and drawbacks for plan design.

Source: Truckerhuss.com, December 2025

Complying With the Required Minimum Distribution Rules When Participants Are Unresponsive or Uncooperative

Unresponsive or uncooperative participants pose serious challenges for tax-qualified retirement plans, creating administrative burdens, fiduciary risks, and potential compliance failures. This article examines these issues, reviews relevant regulatory guidance, and offers practical strategies for mitigating risk when participants scheduled to begin distributions fail to respond or cooperate -- commonly referred to as "recalcitrant participants."

Source: Truckerhuss.com, December 2025

2025 End-of-Year Plan Sponsor "To Do" List: Qualified Retirement Plans

As year-end approaches, employers should review their administrative, operational, and compliance responsibilities for qualified retirement plans. This includes confirming adoption of required amendments, updating processes in line with the SECURE Act and SECURE 2.0, and ensuring contributions, testing, and participant communications are on track. A proactive review now helps prevent compliance issues and supports plan integrity as we head into 2026. For convenience, the "To Do" list is divided into four categories.

Source: Swlaw.com, December 2025

Communicating in the Digital Age

Plan sponsors are increasingly using AI-powered, mobile-first, and highly personalized digital communication strategies to engage participants and improve retirement outcomes. Digital channels -- such as microsites, emails, podcasts, and videos -- are now the preferred method, with 75% of Bank of America's communications delivered digitally this year. A growing trend is short, targeted video content timed around key events like open enrollment or salary increases.

Source: Plansponsor.com, December 2025

How to Best Personalize Plan Communications

Personalized communication is seen as key to helping employees engage with retirement savings and financial literacy resources. A Human-Interest survey found that employees trust these tools, and 87% are more likely to stay with employers who provide them. The level of personalization depends on company size, understanding of participant needs, and collaboration with advisers and recordkeepers.

Source: Plansponsor.com, December 2025

A New Age for PEPs

Pooled employer plans have grown rapidly over the past four years as large employers seek lower governance, fiduciary responsibilities, and administrative costs. The SECURE 2.0 Act of 2022 expanded PEPs to include 403b plans, increasing access for nonprofits and educational institutions. It also extended startup tax credits, enabling small employers joining PEPs to receive a three-year credit to offset costs for new defined contribution plans.

Source: Planadviser.com, December 2025

When $1.8 Million Becomes the Fine Print in the 401k Fee Fight

In the 401k space, it's not just about managing plans; it's about managing perceptions of risk. When a plan is large enough to warrant institutional pricing but doesn't secure it, that omission can look like negligence in court. Whether you're an advisor, TPA, recordkeeper, or ERISA counsel, the key question remains: Can you demonstrate prudence if someone scrutinizes your process? This $1.8 million settlement isn't about scandal; it's about process. It underscores a simple truth: documentation outlasts memory, prudence outperforms guesswork, and time always wins.

Source: Jdsupra.com, December 2025

Did Your 401k Plan Meet the Discretionary Contribution Notice Requirements?

Plan sponsors using pre-approved 401k documents with discretionary matching contributions must comply with a new IRS requirement introduced in the 2022 Cycle 3 Restatement. This applies in any year a discretionary match is made. Despite the flexibility of discretionary matches, plans must meet the "definitely determinable benefits" standard by including a clear formula for contribution allocation. To comply, pre-approved plan documents must include specific language and satisfy two notice requirements.

Source: Brickergraydon.com, December 2025

Bad Tips for 401ks?

From 2025 to 2028, tipped workers can deduct up to $25,000 from federal income taxes, but this may negatively impact their 401k participation. Tips reported on Form W-2 remain subject to withholding and count as compensation for 401k deferrals. While pre-tax deferrals usually offer tax benefits, for tipped employees, they may create a disadvantage by turning otherwise tax-free income into taxable income.

Source: Benefitsattorney.com, December 2025

Bipartisan Bill to Streamline 401k Distribution Options, Expand In-Service Rollover Choices is Back

A bipartisan bill designed to simplify the 402(f)-notice process and provide clearer guidance and greater flexibility for Americans making retirement savings decisions has been reintroduced in Congress by Representatives Jimmy Panetta and Darin LaHood. Known as the Retirement Simplification and Clarity Act, the legislation -- reintroduced on November 26 -- also seeks to expand in-service rollover options to include annuities for individuals aged 50 and older.

Source: 401kspecialistmag.com, December 2025

Fifth Circuit Acts Quickly in Granting DOL Request to Dismiss Fiduciary Rule Appeals

The U.S. Court of Appeals for the Fifth Circuit dismissed the DOL's appeal regarding the Biden administration's Retirement Security Rule, also known as the fiduciary rule, on November 28, 2025. This concludes a lengthy legal dispute over whether one-time retirement investment advice, such as rollovers and annuity purchases, should be subject to ERISA's fiduciary standard. The DOL had previously requested multiple delays before filing an unopposed motion to withdraw the appeal. The case originated from nationwide stays issued by Texas district courts in July 2024, which blocked the enforcement of the rule before its planned implementation in September 2024.

Source: 401kspecialistmag.com, December 2025

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