News Archive

"In response to recommendations from the [GAO], the IRS has made the new model notices easier for participants to read and is urging plans to make each notice available as soon as possible before the distribution date so the participant can make educated decisions about whether to receive or roll over the distribution.... Plan administrators that use the safe-harbor notice should switch to the new model notices as soon as possible."  MORE >>

"In this article [the authors] explain why postmarks matter to retirement plans, clarifications in the final rule, and what plan administrative changes may be needed to ensure mail is timely postmarked, and [they] list the operational items plan sponsors and their advisors may need to review and potentially adjust going forward."  MORE >>

"HR 7362, the Form 5500 Filing Simplification Act ... would extend the deadline for filing the form by almost three months.... This effectively would mean that the deadline for calendar-year plans to file the Form 5500 would be Oct. 15, not the current July 31."  MORE >>

"The U.S. 7th Circuit Court of Appeals awarded a deceased retirement plan participant's assets to his ex-wife, ruling that [the participant's] faxed beneficiary change request did not meet the [retirement] plan's formal requirements for changing beneficiaries.... Although the appellate court's three-judge panel agreed that his actions clearly showed intent, it ruled that his action was not similar enough to processes set forth in the plan documents to qualify." [Packaging Corp. of Am. Thrift Plan for Hourly Emps. v. Langdon, No. 25-1859 (7th Cir. Feb. 2, 2026)]  MORE >>

"Plan sponsors rely on providers because they cannot realistically master this level of detail themselves.... Providers who want to avoid being swept into the catch-up mess should focus less on marketing readiness and more on structural honesty. First, stop oversimplifying.... Second, document limitations clearly.... Third, help sponsors build internal processes.... Finally, resist the urge to promise protection."  MORE >>

"Recordkeepers are expanding into wealth management, managed accounts, and participant-level services -- areas once reserved for advisors.... These dynamics risk becoming co-option -- where advisors, dependent on recordkeepers for referrals, technology, and even marketing support, lose their independence. When that happens, plan sponsors and participants may face higher costs, less transparency, and weaker fee negotiations."  MORE >>

"The updated models incorporate recent legislative changes ... [and] also include changes intended to make the 402(f) notice clearer and more concise.... Plan administrators may customize the updated models to [1] omit any information that does not apply to the relevant plan and/or [2] provide any additional information so long as the information is consistent with IRS rules."  MORE >>

"Kleinfeldt's estate argued that his fax was 'for all practical purposes similar to' the procedures set forth in the plan documents.... The court found that the fax was 'a method that deviates materially from the Plan's terms' and therefore it 'falls short of being 'for all practical purposes similar to' the procedures required by the plan documents[.]' " [Packaging Corp. of Am. Thrift Plan for Hourly Emps. v. Langdon, No. 25-1859 (7th Cir. Feb. 2, 2026)]  MORE >>

"For advisors who want to help plan sponsor clients begin proactively looking at plan providers' utilization of AI, here are six ideas: [1] Start doing due diligence ... [2] Understand a recordkeeper's AI priorities ... [3] Get knowledgeable about data-security risks ... [4] Learn about hallucination risks: ... [5] Look into protections if problems occur ... [6] Talk proactively about advisory firm's AI use."  MORE >>

"[M]ore than half of plan sponsors rank cybersecurity as their number one plan concern, surpassing worries about poor investment performance (45 percent) and insufficient participant savings (43 percent). That concern is well founded."  MORE >>

"[I]ndividuals and businesses in the State of Montana affected by severe storms and flooding that began on Dec. 10, 2025 ... now have until May 1, 2026, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households that reside or have a business in the Blackfeet Indian Reservation, Lincoln, and Sanders counties qualify for tax relief."  MORE >>

"[T]he Seventh Circuit reversed a district court's sua sponte summary judgment ruling and held that a plan participant did not effectively remove his ex-spouse as the primary beneficiary of an ERISA-governed retirement plan where he failed to comply -- substantially or otherwise -- with the plan's prescribed beneficiary-change procedures." [Packaging Corp. of Am. Thrift Plan for Hourly Emps. v. Langdon, No. 25-1859 (7th Cir. Feb. 2, 2026)]  MORE >>

"The Department of Labor filed its fourth amicus brief supporting employers in 401(k) plan forfeiture disputes, offering its starkest warning yet that a pro-plaintiff ruling could jeopardize employee benefits." [Barragan v. Honeywell Int'l, Inc., No. 24-4529 (D.N.J. Aug. 18, 2025; on appeal to 3d Cir. No. 25-2509)]   MORE >>

"EBSA's enforcement program helped 8,015 terminated vested participants in defined benefit pension plans collect benefits of $512.5 million owed to them.... EBSA says that in FY 2025, it helped improve missing participant procedures for 49 plans.... EBSA reports that it held more than 1,300 education and outreach events in FY 2025."  MORE >>

"While year-end is a natural checkpoint, reassessing your retirement plan at the start of the year offers several advantages:[1] Tax efficiency ... [2] Regulatory compliance ... [3] Employee engagement ... [4] Strategic alignment."  MORE >>

"The IRS and Treasury Department encourage plans to customize a safe harbor explanation by omitting any information that does not apply to the plan. This article highlights the changes that qualified governmental plans should consider making to their Special Tax Notices."  MORE >>

"[T]he department argues that the district court correctly held that the plan sponsor did not breach its fiduciary duties of prudence and loyalty because the plaintiff's argument only included a bare allegation that forfeitures were not allocated to pay plan expenses, even though the plan at issue provided for fiduciary discretion over that decision. Instead, the brief explains how a prudent and loyal fiduciary might have concluded that it was important to ensure that plan participants received the contributions expressly promised by the plan in a timely manner." [Barragan v. Honeywell Int'l, Inc., No. 24-4529 (D.N.J. Aug. 18, 2025; on appeal to 3d Cir. No. 25-2509)]  MORE >>

"Two new reports from Transamerica suggest that major changes are coming to the retirement landscape by 2030, driven by automation, predictive analytics, and personalized engagement tools. At the same time, however, plans will have to navigate increasing fiduciary threats as a result of these changes."  MORE >>

"[FEMA] issued Major Disaster Declarations on January 23 and January 24 for [twelve] states relative to winter storms.... For a limited period of time following a disaster declaration, eligible IRA owners and employer plan participants may take qualified disaster recovery distributions and recontribute qualified home purchase distributions that they recently received. In addition, plan participants may qualify for plan loan relief and additional hardship distributions."  MORE >>

"Where district courts have ruled on motions to dismiss forfeiture-related claims, to date they have largely sided with defendant-employers ... [F]orfeiture claims have been dismissed in at least 25 cases and have been allowed to survive in at least six cases.... Appeals are currently pending in the Third, Eighth, and Ninth Circuits, and Bank of America recently requested permission for a Fourth Circuit appeal. The Ninth Circuit is poised to be the first to rule."  MORE >>

14 pages. "The U.S. retirement system is at a pivotal moment -- shaped by evolving regulation, rapid technological change, and a renewed focus on meeting the diverse needs of plan participants. This [report spotlights] three transformative themes: enhanced diversification in defined contribution (DC) plans to address modern market complexities, the accelerating impact of artificial intelligence (AI) across the retirement ecosystem, and the growing demand for personalized advice solutions."  MORE >>

"82% said their use of AI for finance had increased in the past 12 months. Overall, 71.8% of respondents said they made financial decisions as a result of AI guidance or information, and almost one in eight -- 11.9% -- said they took 'significant actions' in their retirement planning following AI feedback."  MORE >>

"AI is a fantastic tool when used properly, and can be easy to use, but you need to know that the information it gives will be flawed if you input incomplete or incorrect parameters or fail to interpret the output correctly. Using it for research may be a good first step, but it is important to make sure to check the citations and read the source material to which they refer and ensure that you're doing things correctly."  MORE >>

"Comments are invited on: [1] Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; [2] the accuracy of the agency's estimate of the burden of the collection of information; [3] ways to enhance the quality, utility, and clarity of the information to be collected; [4] ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and [5] estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.... There is no change to the previously approved information collection."  MORE >>

"[S]tudents, nonresident aliens, and employees eligible to other plans can still be excluded from the plan, as long as the exclusions are applied consistently to all employees who still meet each category.... Employer contributions not required, but permitted/LTPT inclusion in the testing sometimes required, sometimes permitted.... Former LTPT employees and vesting: nobody said life would always be fair.... Mistakes happen: correcting improper exclusion of LTPT employees.... How will the auditors test LTPT administration?"  MORE >>