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Solo 401(k) Plans Draw Wall Street Attention as Tax Shelter Demand Soars

"The likes of JPMorgan and Betterment are racing to offer solo 401(k)s to a new cohort: Post-pandemic contractors and self-employed DIY savers looking to shelter more income, grow assets tax-deferred or tax-free, all with the click of a button."

Independent Record Keepers Gain Ground as Big Brands Falter

"As record keeper consolidation disrupts service and relationships with the larger brands, many of which are focusing on participants' services and offering almost zero-profit pricing, which puts them in competition with advisors, independent record keepers exist in a totally different universe. Their cost structure with much fewer field salespeople and lower corporate overhead does not require the same type of scale to survive or thrive, with owners and senior managers directly involved in the day-to-day."

401(k) Record Keeper Exits Threaten Advisor Clients

"As larger providers get scale, cost savings diminish with each acquisition. The holy grail is offering participants wealth services ... Depending on the business models and market focus, the list of viable record keepers may be limited. ... Advisors need to narrow their partnerships to record keepers, first, not likely to exit the market, but also are willing to collaborate with reasonable rules of engagement, allowing for both parties to make money, which requires advisors to have scale, savvy and determination as providers go through the same process themselves."

Law Firms Cash in as Private Equity Giants Target 401(k) Market

"Law firms that have long advised private equity giants on mergers and acquisitions -- and often bill more than $1,000 an hour for their services -- are joining the industry's latest treasure hunt: prying open America's 401(k)s.... All told, nearly $13 trillion is sitting in 401(k) accounts and other defined-contribution retirement plans. Tapping into that trove could help plug gaps left by deep-pocketed pensions and endowments."

Data Wars: Who Controls Your 401(k) Information?

"If data is like oil, then anyone should be able to drill for it, no matter who owns the land. And the driller should not charge even if they incur the costs of refining, storing and shipping.... [T]he reckoning over data is coming between record keepers that want to cross-sell, which may be most, if not all, of them, according to McKinsey, either alone or in partnership with advisors, and advisory firms that have similar ambitions[.]"

District Court Decision Reveals True Value of ERISA 3(38) Services

"[A] recent litigation outcome provides a roadmap for selling -- but not overselling -- ERISA 3(38) services. If used correctly, it may also serve as a blueprint for helping clients to take appropriate steps to fulfill their residual responsibility to monitor a 3(38) fiduciary." [Wanek v. Russell Investments Trust Co., No. 21-0961 (D. Nev. Sep. 25, 2025)]

Advisors Face New Conflict of Interest Challenges

"A trio of recent litigation developments suggests that advisors may need to broaden the lens through which they identify and observe conflicts.... Proprietary product placement ... MEPs and PEPs: The value of independence ... Who owns the data?"

The Key to Being a Successful Retirement Plan Advisor

"Granted, RPAs must know the basics and help clients set up and run their retirement plan, minimizing work (time), liability and costs while integrating wealth and benefits services.... But before we pick a lane or personal brand, we must know ourselves, which can be a lifelong journey, maybe longer. "

Morgan Stanley Wins Deferred Comp Arbitration Case

"In the FINRA award dated Aug. 8, a three-person panel ruled against former Morgan Stanley rep Patrick T. O'Neill.... In the arbitration, [O'Neill] argued that Morgan Stanley's deferred compensation plan forfeiture for advisors who leave is 'impermissible under ERISA.' " [O'Neill v. Morgan Stanley, No. 24-00358 (FINRA Aug. 8, 2025)]

Microsoft Report Says AI Will Replace Advisors; Advisors Say, Not So Fast

"[Advisors] don't see AI as a threat. Rather, they view it as an extension of the tech innovation that's been going on for decades; it can be used for certain tasks ... to make them more efficient and create more capacity.... AI will not be able to replicate the human connection advisors have with their clients."

Has ERISA Litigation Been Helpful or Harmful?

"[This] seemed like a good time to ask some critical questions to both plaintiffs' and defendants' attorneys.... [1] Whether there has been any value to ERISA litigation ... [2] What harm has it caused? [3] Whether you have evidence it is being funded by PE/VC firms. [4] What effect will the new EBSA director ... have? [5] Do you agree with him that we should have a special ERISA court, like with patents, because it is so technical? [6] What effect will recent SCOTUS decisions like Chevron et al. have? ... Here are some of their responses."

Private Equity Is Coming to 401(k) Plans: Will You Be Ready?

"The private equity train is rolling down the tracks toward your clients' 401(k) plans. Recent litigation failed to stand in the way, Empower has given it a strong nudge, and the full weight of the White House is about to be behind it. As the movement picks up steam ... advisors are likely to face more questions and, in time, demand."

The Key to Elevating 401(k) Advisors in a Booming DC System

"Beyond fees, funds, fiduciary and even financial wellness, what does it take to be a great advisor? Clearly the answer is courage.... Which raises the existential question of why advisors do what they do, or their mission statement -- to help people or make money? While not mutually exclusive, which comes first and which trumps the other when difficult decisions need to be made?"

Banks Poised to Enter 401(k) Market as Plan Formation Surges

"Banks, which seem to be a logical solution for smaller start-up plans, have mostly retreated from defined contribution record-keeping except for JPMorgan Chase.... So why has JPMorgan succeeded where so many other banks have failed, and will there be a resurgence?"

Automated Due Diligence Reshapes Retirement Industry Landscape

"Several macro trends are forcing defined contribution record keepers and advisors to significantly change their business models, with the most prevalent being the decline of plan fees while the costs of technology and service rise. Unless they adapt moving ... from a 'product' to 'participant' centric model, they face heavy headwinds, unlikely to compete with scaled providers with unique distribution models, with proprietary investments and the ability to cross-sell to participants."

Forfeiture Lawsuits: A New Challenge for 401(k) Plan Advisors

"Although we don't yet have a fully developed collection of 'substantive' rulings on these forfeiture allegations ... [we] can expect plaintiffs to gain a clearer understanding of the specific plan document language in place and to rely on publicly available company financials to identify the specific forfeiture dollar amounts that may have been used in contravention of the plan language.... Plan sponsors expect their plan advisors to be familiar with the forfeiture litigation allegations and court rulings. This presents advisors with both opportunity (to demonstrate a sophisticated understanding) and reputational risk (in the event they cannot). "

Advisors vs. Record Keepers: The Fight for DC Plan Participant Assets

"Convergence is potentially pitting advisors who sold and manage a plan against their record keeper partners. The question is not just who stands to profit the most or is best positioned; the question is what is in the best interest of the participants because of ERISA fiduciary mandates."

How Consolidation and Convergence Are Reshaping the 401(k) Industry

"These forces are driven, on the one hand, by the growing demand for plan sponsors to help employees and, on the other hand, for providers and advisors to find additional sources of revenue as plan fees decline.... Major investments in people and technology are required ... [Empower's Rich Linton] claimed that there were 400 record keepers 15 years ago and just 50 today."

Plan Sponsors Driving 401(k) Industry Consolidation

"Most small to mid-sized plans and even larger ones will never have the resources to hire a dedicated in-house DC professional, so they will continue to rely on their plan advisor or consultant with one big change. They are starting to realize that the most important decision they can make is hiring the right advisor. Their advisor has drilled into them the need to conduct regular investment due diligence and periodic record keeper RFPs, which is how many were hired."

Forfeiture Lawsuits Set to Upend 401(k) Plans

"There has been a deluge of ERISA lawsuits alleging misuse of forfeiture assets to offset a plan sponsor's match contribution rather than benefit participants and beneficiaries ... If these cases are successful, it could change the way most defined contribution plans are run. Initially thought of as a nuisance, plan sponsors and defense counsel are starting to take these cases seriously, as heavyweights like Jerry Schlichter are betting they will be successful."