"The [DOL] rescinded a 2022 Biden-era guidance calling on plan sponsors to use 'extreme care' when considering crypto investments.... With the cautionary language rescinded, the DOL states that it is taking a neutral stance and neither endorses nor disapproves of plan sponsors including cryptocurrency in plan investment menus."  MORE >>

"While the 2022 Release did not have the force of law, it clearly had a chilling effect on the addition of cryptocurrencies and other digital assets to a 401(k) plan’s investment platform or availability under a brokerage window. Plan fiduciaries who had been reluctant to consider adding cryptocurrency as an investment option in light of the DOL’s 2022 guidance may now wish to consider whether the addition of a cryptocurrency investment option in some form would be consistent with their fiduciary obligations under the plan."  MORE >>

"The IRS recently clarified several key aspects of this rule: [1] Only FICA wages paid by the plan-sponsoring employer (e.g., the participant's common law employer) count toward the $145,000 threshold.... [2] Participants without FICA wages (e.g., partners who have only self-employment income) are not subject to the Roth requirement.... [3] The $145,000 threshold is not prorated for employees who worked only part of the year.... [4] New hires who have no income from the employer sponsoring the plan for the preceding calendar year are not subject to the Roth requirement."  MORE >>

"The Trump administration has eliminated regulatory barriers that previously discouraged employers from offering cryptocurrency options in workplace retirement plans. The prior guidance warned employers to use 'extreme care' and launched investigations into plan sponsors offering crypto options. Despite the change, crypto remains rare in 401(k) plans; fewer than 1% include digital assets, according to a 2024 GAO report."  MORE >>

"According to a Status Report filed before the U.S. Court of Appeals for the Fifth Circuit, the DOL will now pursue changing and/or rescinding the existing ESG regulation through a formal regulatory notice-and-comment period." [Utah v. Chavez-DeRemer, No. 23-0016 (N.D. Tex. Feb. 14, 2025; on appeal to 5th Cir. No. 23-11097)]  MORE >>

106 pages. "The 401(k) plan, and defined contribution plans generally, enable an employee to make regular small investments in the market over a long period.... [The authors] probe the requirements for success when making periodic investments to fund periodic withdrawals and then consult the historical record to see how often these conditions have been met. [They] find that absent inhuman levels of risk tolerance and superhuman levels of thrift, only the fortunate few could have succeeded."  MORE >>

"The real solution to this for plan fiduciaries is to focus less on the litigation risk and instead on the liability risk. Litigation risk for fiduciaries in running 401(k) plans is real and cannot be avoided -- and the only real solution to that is to make sure that this risk is properly and thoughtfully transferred by plans to their insurers, which effectively turns the litigation risk of providing a 401(k) plan into a shared and pooled risk among all plan sponsors."  MORE >>

"53% of companies are taking direct action to reduce healthcare costs, while cost-sharing adjustments (23%) and sunsetting low-value programs (30%) signal a shift toward tightening plan designs.... The number of companies matching employee [retirement plan] contributions continues to grow -- up 17% since 2023. More employers are enhancing existing matches -- 6% increased their existing matches in the past 12 months[.]"  MORE >>

"[T]he bill does not change the tax incentives for retirement savings or cap the exclusion for employer-sponsored health insurance. However, it does include other benefit-related provisions, including changes to [HSAs], [ICHRAs], fringe benefits, and executive compensation. It also creates new tax-preferred 'Trump Accounts' for children and provides the Office of Management and Budget with $100 million for deregulatory activities."  MORE >>

"According to the complaint, even though the Key Executive plan doesn't define 'spouse,' Coca-Cola now allegedly maintains the term could only mean the executive's spouse at the time he began receiving benefits. It determined that because the plaintiff wasn't married to him then, she wasn't his surviving 'spouse' and the other representations had been a mistake, the lawsuit alleged." [Wolf v. The Coca-Cola Co., No. 25-2738 (N.D. Ga. complaint filed May 16, 2025)  MORE >>

"For startup founders, a Section 83(b) Election can be a highly effective tax strategy, especially when the restricted equity value at the grant date is low and there is a strong potential for growth. That said, making the election is not without risk."  MORE >>

"Although allowing executives to use a company's private aircraft can be an attractive benefit for executives, businesses should proactively manage any associated tax, governance and operational issues and, for public companies, SEC disclosure obligations as well."  MORE >>