"The OBBBA introduces new birth-based custodial accounts, (i.e., 'Trump accounts') ... [which] would be traditional [IRAs] subject to special rules until the year a child turns age 18 ... The OBBBA provides eligibility criteria to establish a Trump account, defines the types of contributions that may be made, establishes the rules for when distributions may occur, outlines the tax treatment of these accounts, and defines the eligible investment options and reporting requirements."  MORE >>

"In an amicus brief ... the [DOL] notes that 'The established understanding for several decades has been that defined contribution plans ... may allocate forfeited employer contributions to pay benefits for remaining participants rather than using those funds to defray administrative expenses.' ... The brief turns to case law to explain that ' "funding a plan is a settlor function," reserved for the plan sponsor,' and that 'this includes plan sponsor "decisions relating to the timing and amount of contributions." ' It continues, 'Caselaw is clear that plan funding decisions are settlor decisions, not fiduciary ones.' " [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Feb. 5, 2025; on appeal to 9th Cir. No. 25-826)]  MORE >>

"In this case, ... the defendant, after losing its motion to dismiss, did decide to go through a full trial, complete with testimony by committee members and by dueling experts. As a result, the judge was able to consider the committee's process in detail and make a determination that ... [this] process met ERISA's prudence standard, and, in the course of his opinion, [provided] a useful roadmap for fiduciaries." [Waldner v. Natixis Investment Managers LP, No. 21-10273 (D. Mass. Jun. 26, 2025)]  MORE >>

"[T]he regular presentation of the beneficiary names on participant statements could create a false impression -- but that process itself wasn't deemed to be a fiduciary action (or responsibility). Still, it took a long process, two reviews by the district court, and a trip to the federal district court of appeals to determine that.... [The case is] a timely reminder that knowing who the beneficiar(ies) on file is matters -- but so are the requirements of the law[.]" [LeBoeuf v. Entergy Corp., No. 24-30583 (5th Cir. May 1, 2025)]  MORE >>

"[P]lan sponsors are under growing pressure to keep up with evolving responsibilities.... [R]isk management is paramount and insurance is certainly becoming more important. Plan sponsors who establish the proper safeguards to mitigate risks associated with potential fiduciary breaches will be best suited to support plan participants securely and confidently."  MORE >>

The author provides nine suggestions for TPAs and Financial Advisors who have chosen CB plans as their go-to Defined Benefit (DB) plan of choice in a 401(k) world.  MORE >>

"7 in 10 (73%) retirement plan participants want the same investment options available to institutional investors.... Nearly a third of Americans (31%; and 34% of plan participants) say they would allocate up between 10-15% of their retirement savings into private investments like private equity, private real estate, and private credit."  MORE >>

"For decades -- predating ERISA's enactment -- the Treasury Department has expressly allowed the use of forfeited contributions in these tax-advantaged plans to offset remaining employer contributions under the Tax Code, including Tax Code provisions that mirror ERISA's fiduciary provisions. Congress has acknowledged the same. It would be not just exceedingly odd but legally incoherent for ERISA to impose fiduciary liability for a practice that is allowed under the Tax Code's analogous regulations and does not result in participants receiving fewer benefits than they were promised." [Hutchins v. HP Inc., No. 23-5875 (N.D. Calif. Feb. 5, 2025; on appeal to 9th Cir. No. 25-826)]  MORE >>

"[I]ndividuals and businesses in parts of Texas affected by severe storms, straight-line winds. and flooding that began on July 2, 2025 ... now have until Feb. 2, 2026, to file various federal individual and business tax returns and make tax payments.... [I]ndividuals and households residing or having a business in Kerr County qualify for tax relief."  MORE >>

"[1] Public employee compensation: Expansion of deduction limit applicable to executive compensation ... [2] Continuation of employer credit for paid family and medical leave ... [3] Health Savings Account provisions ... [4] Increased limits for Dependent Care Assistance Programs ... [5] Continuation of employer-provided educational assistance ... [6] [T]he House [had] proposed eliminating the deduction for bicycle commuting reimbursements ... However, the final BBB retains the deduction for bicycle commuting reimbursements.... [7] Tax-exempt organizations: Expanded excise tax on excess compensation."  MORE >>

"[T]he OBBB expands access to and eligible expenses payable from Health Savings Accounts (HSAs), solidifies first dollar coverage for telehealth under high-deductible health plans (HDHPs), and permanently increases the annual contribution limit for dependent care flexible spending accounts (FSAs) for the first time since 1986.... This legal update provides an overview of the OBBB's employee benefits provisions and any actions that employers need to take for their employee benefit plans now or in the future."  MORE >>

"Morgan Stanley argued that the district court's commentary on the merits of the underlying ERISA claims rendered its order effectively a 'denial' of arbitration, and therefore appealable. The Second Circuit rejected this novel theory, citing the statute's plain language and declining to interpret a granted motion as a constructive denial.... Morgan Stanley separately sought a writ of mandamus ... to erase the district court's conclusion that the compensation plans were governed by ERISA. But the Second Circuit made clear that such relief is only available in extreme circumstances." [Shafer v. Morgan Stanley, No. 24-3141 (2d Cir. July 9, 2025; unpub.)]  MORE >>

"[T]he ERISA-required fidelity bond protects the plan and its participants, not the employer. If the bonding company does pay a claim, it may have subrogation rights to recover its payment from the employer and/or its officers and employees responsible for plan administration.  ... [C]onsider fiduciary liability insurance that is not just an add on to other policies. But there is no standard form for such insurance, so every proposal needs to be carefully reviewed and compared to other policies on the market."  MORE >>

"With more and more change and risk coming to plans and to those running them, particularly with regard to what the investment menu is going to begin to look like in many plans, plan sponsors and fiduciaries ... have to end the blind eye they often used to take with regard to the details of their vendor contracts or the terms in those contracts.... As the current evolution of plans, and particularly of the financial exposures of fiduciaries, continues ... the cost for not proactively taking this action will become much too high."  MORE >>