"In the guidance and request for information, EBSA says it is concerned that because PEPs are 'relatively new,' having been made possible with the enactment of the [SECURE Act] of 2019 (SECURE Act), small employers might not be aware of them, nor how ERISA applies to them. It hopes that the information it gathers will help them to address challenges that may impede small employers' adoption of PEPs."  MORE >>

"The DOL explained ... that if the pooled plan provider delegates plan investment and management to an investment manager, the investment manager (rather than the employer participating in the PEP) is responsible for prudently selecting investments and managing the plan. The pooled plan provider would be responsible for selecting and monitoring the investment manager.... The guidance also included fiduciary tips to help small employers who are considering participating in a PEP."  MORE >>

"Trump Accounts are a new type of custodial savings account for children under 18 ... Employers can contribute up to $2,500 per year ... to a child's Trump Account, and this contribution is generally tax-free to the employee. Total contributions are capped at $5,000 per year per child ... Trump Accounts must be invested in eligible mutual funds or exchange-traded funds that track qualified indices like the S&P 500, with annual fees not exceeding 0.1 percent of the account balance. Earnings are tax-free. Distributions are generally restricted until age 18, with exceptions for rollovers or correcting excess contributions. "  MORE >>

"[O]wning multiple businesses (or having family members who do) can trigger complex 401(k) compliance requirements that, if ignored, may lead to steep IRS penalties. This post will explain what a controlled group is, how to identify one, the risks of getting it wrong, and how changes made by [SECURE 2.0] affect spouses with separate businesses."  MORE >>

"Another 401(k) plan has been charged with a fiduciary breach quadfecta: excessive recordkeeping fees, expensive managed account charges, a poor performing stable value option -- and offsetting employer contributions with forfeitures." [(Babinski v. Siemens Energy Inc., No. 25-3381 (S.D. Tex. complaint filed Jul. 22, 2025)]  MORE >>

"A Safe Harbor 401(k) can automatically satisfy most nondiscrimination testing ... and enables all employees, including owners, to maximize their contributions. New Safe Harbor 401(k) plans may qualify for tax credits to offset or even cover the expense of starting and maintaining a plan. Attract and retain top talent while encouraging higher employee participation through the required safe harbor employer contribution."  MORE >>

"[T]he Promotion and Expansion of Private Employee Ownership Act [S 2461] ... would ... [1] [Provide] deferral treatment for contributions of S Corporation stock to an ESOP so long as certain reinvestment requirements are met. [2] Provide technical assistance for companies that may be interested in forming an S-ESOP. [3] Ensure small businesses that become ESOPs retain their SBA certification.... [4] Create the position of an 'Employee Ownership Advocate' at the [DOL] to support the formation and success of employee ownership."  MORE >>

"Taxes, retirement income, RMDs and legacies are especially important considerations for clients near or in retirement. Such a conversion, of course, will increase taxes in the year it is done. Clients over 60 need to consider how any income bump might affect their Social Security, Medicare or eligibility for the new senior tax deduction."  MORE >>

"AI technologies are already being integrated into various aspects of Plan management and operations. Fiduciaries should understand how these technologies can benefit participants and beneficiaries -- and how to mitigate associated risks.... Recommended action items include: [2] Integrate AI risk management into the Plan's overall governance strategy. [2] Evaluate and document how AI tools impact investment selection, recordkeeping, and participant advice. [3] Review and revise service provider contracts to include AI-specific clauses. [4] Conduct initial and periodic due diligence on vendors, involving technical experts as needed."  MORE >>

"a 65-year-old retiring in 2025 can expect to spend an average of $172,500 in health care and medical expenses throughout retirement. This represents a more than 4% increase over 2024 and continues the general upward trajectory of projected health-related expenses since Fidelity’s inaugural $80,000 estimate in 2002."  MORE >>