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.
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.
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.
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.
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.
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."
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.
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.
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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.
