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.
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.
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.
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.
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.
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.
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.
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?"
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
