News Archive

"[M]ost scenarios also show reductions in total plan costs and advisor compensation. The data also underscores a persistent reality: smaller plans continue to pay significantly more than their larger counterparts, and cost variation across providers remains substantial."  MORE >>

4-page chart compares features of 4 types of retirement plans commonly used by small businesses.  MORE >>

"[T]he exemption for safe harbor 401(k) plans related to top-heavy testing is nullified when after-tax contributions are present. In such cases, the safe harbor plan must satisfy top-heavy requirements. However, the plan can take safe harbor nonelective and matching contributions into account in determining whether an employer has satisfied its top-heavy minimum-contribution obligation."  MORE >>

"Plan sponsors need to keep their plans in compliance with the nondiscrimination rules to remain qualified, and this is normally accomplished by performing annual testing that demonstrates compliance. In certain cases where a plan passes the testing by a significant margin, plan sponsors are permitted to perform the testing on a three-year cycle if there have been no significant changes to the plan or the workforce."  MORE >>

"Plan sponsors were hit with 15 [ERISA] complaints in recent weeks alleging they breached their fiduciary duties by retaining American Century's One Choice target-date fund suite, which for years has underperformed peers  ... The suits span plans of varying sizes, from roughly $120 million to more than $1 billion[.]"  MORE >>

"[1] Participants in larger plans may benefit from lower fees than those in smaller plans.... [2] Collective Investment Trusts now hold 42% of DC plan assets as sponsors seek lower costs.... [3] Despite over $6.3 trillion in DC plan outflows since 2015, this dynamic environment creates new opportunities for innovation and participant engagement. [4] DB plans ... account for a quarter of retirement distributions and support nearly 30 million people."  MORE >>

"In a given year, 83 percent of all households will face at least one type of spending shock, and on average, these unexpected expenses equal about 10 percent of annual income. To cover these expenditures over a 25-year retirement requires a fund of $200,000 to $400,000. The need for an emergency fund, combined with the fact that the very wealthy can self-insure against running out of money, limits the potential market for annuities."  MORE >>

"The problem isn't technology. The problem is faith. People believe numbers because they look confident. A spreadsheet never hesitates, never admits it's confused, and never says, 'I might be wrong.' Human beings, on the other hand, are messy, so we trust the neat rows instead of the messy reality. That's how you get late deposit calculations based on the wrong pay frequency or eligibility lists that still include employees who retired during the Bush presidency."  MORE >>

"[The IRS] has specific language and procedures to correct plan errors ... [R]efunds distributed to HCEs [in error] are considered 'overpayments,' that is, amounts paid to participants that should not have been.... In general, the IRS's correction rules require the Plan to request that participants repay the overpayment.... However, the SECURE 2.0 Act made fixing this problem easier if the overpayment is an 'inadvertent benefit overpayment' or 'IBO'."  MORE >>

83 pages. "Larger 401(k) plans tended to be more likely to report that they automatically enroll workers into the plan.... Most 401(k) plans offer employer contributions.... Larger 401(k) plans are more likely to report participant loans outstanding ... 401(k) plans with automatic enrollment are more likely to have both employer contributions and participant loans outstanding than plans without automatic enrollment. "  MORE >>

"The important considerations for a change of recordkeepers are factors that affect participant outcomes -- that is, financial security in retirement.... Those relevant factors include the investments, participant services, and costs of the current recordkeeper as compared to those of the possible new recordkeeper."  MORE >>

"You should have no problem if you were in only one plan during 2025. Your plan should have automatically blocked you from exceeding the deferral limit. Even if that didn't happen, the plan is responsible for fixing the problem. But you may have a problem if you were in two different plans during the year because you had two jobs at the same time or changed jobs. Since one plan could not be expected to know how much you contributed to the other plan, the burden is on you to keep track of your combined deferrals."  MORE >>

"Participation and savings patterns offer insight into how employees are engaging with their plan and whether contribution behaviors are supporting long-term savings goals.... Plan participation rate ... Average deferral rate ... Employer match utilization rate ... Automatic enrollment opt-out rate ... Automatic escalation success rate ... Participant registration rate ... Online engagement rate ... Call center volume and participant inquiry patterns."  MORE >>

"[The company] explicitly acknowledged that climate change poses a material threat to its own business operations and moved to insulate its balance sheet, yet allegedly failed to apply similar risk analysis to its 401(k) plan....The case could have profound implications for the $12 trillion in retirement savings held in 401(k)-style plans, potentially establishing a legal precedent that recognizes climate risk management as a mandatory component of fiduciary duty." [Kvek v. Cushman & Wakefield U.S., Inc., No. 26-0736 (W.D. Wash. complaint filed Mar. 3, 2026)]  MORE >>

"The average Vanguard 401(k) balance rose to a record $167,970 at year-end 2025. The growth was driven by strong stock market gains and Americans' expanding use of automated savings plans. A record 6% of Vanguard participants took a hardship withdrawal in 2025, the sixth straight annual increase and triple the pre-pandemic rate."  MORE >>

"Plan design and participant behavior trends that worked well for defined contribution participants in 2024 continued into 2025 ... Last year, the average participant account balance increased by 13% year-over-year, hitting a record high of $167,970 on December 31, 2025. Vanguard reported that 45% of participants increased their deferral rates in 2025, either on their own or as part of an automatic annual increase."  MORE >>

"For crypto specifically, attention hinges on the design of the upcoming fiduciary safe harbor. This regulatory ''checklist' is intended to immunize fiduciaries from liability for investment losses, provided specific standards are met. Its critical pillars are expected to include qualified custody requirements, liquidity constraints and portfolio allocation caps. Even after the major regulatory hurdle is cleared, however, broad adoption will likely unfold more akin to a glacial shift over several years than like a speculative spark."  MORE >>

"CPAs are in a great position during the tax filing season to remind individuals of these Roth catch-up requirements, and to remind them to ask their employers if any action is required on their behalf for making any catch-up contributions in the future. Depending on the facts and circumstances, individuals under the age of 50 who expect to have wages above the threshold in the near future may be more inclined to contribute on a pre-tax basis, knowing that the Roth option could be required on a portion of their retirement savings."  MORE >>

"A recent decision addressing a motion to dismiss prohibited transaction claims serves as a good reminder to plan sponsors and fiduciaries not to overlook procedural safeguards when defending against such claims, including whether plaintiffs lack Article III constitutional standing." [Peeler v. Bayada Home Health Care, Inc., No. 24-0231 (W.D.N.C. Jan. 27, 2026)]  MORE >>

"Given the turbulent dynamic and the increasingly costly world of retirement plan litigation, what can advisors and plan sponsors do to make sure to better guarantee they don't end up on the receiving end of a Schlichter-inspired suit?"  MORE >>

"A 401(k) is one of the most valued benefits you offer, but many plans are left on autopilot. This blog explores how a strategic broker can help you optimize vendor selection, benchmark plan design, drive employee participation, and manage complex transitions like PEO exits. When approached thoughtfully, your 401(k) can become a powerful tool for retention, engagement, and long-term financial wellness."  MORE >>

"[This article] summarizes eight tests that are required annually. It’s not uncommon for a plan to be subject to a half dozen or more of these tests."  MORE >>

"Prior to 1986, ... when the participant sought to withdraw [after-tax deferrals], those in-service withdrawals were treated as withdrawing tax basis first.... Unfortunately, the '86 Act changed all of that.... Fast forward to the SECURE and SECURE 2.0, where extreme efforts were made to allow participants to withdraw funds under personally exigent circumstances ... [This] has resulted in a plethora of horribly complicated rules which are not being widely used. "  MORE >>

"The decision to adopt the $7,000 automatic cash-out limit involves balancing administrative efficiency against participant impact and implementation costs."  MORE >>

"New data suggests that decisions to take 401(k) loans are driven less by discretionary spending and more by day-to-day cash-flow constraints.... By linking 401(k) records with Chase household spending data, researchers were able to analyze who takes defined contribution plan loans and where the money effectively goes."  MORE >>