Summary of the final regs on Roth catch-up contributions, in Q&A form. Topics: [1] General questions ... [2] FICA wage limit ... [3] Catch-up election methods ... [4] Contributions ... [5] Testing implications/correction methods ... [6] Payroll provider.  MORE >>

"[A Texas district court found] that the plaintiffs' forfeitures theory could not stand where the forfeitures were used to reduce the employer's voluntary contributions consistent with the terms of the plan. The court noted that the use of forfeitures to reduce an employer's contribution instead of to defray administrative costs does not violate the duty of loyalty.... [In Mississippi, the district court] reasoned that because it is a 'fair and reasonable interpretation' of the plan document that Peco could either pay administrative expenses or offset employer contributions, Peco's 'use of the forfeitures to offset employer contributions did not violate the terms of the Plan.' " [Del Bosque v. Coca-Cola Southwest Beverages LLC, No. 25-1270 (N.D. Tex. Nov. 13, 2025); Brown v. Peco Foods, Inc., No. 25-0491 (S.D. Miss. Nov. 14, 2025)]  MORE >>

"Most adults do not think it's important to have the ability to invest in private market investments (61%) ... within their workplace retirement savings account.... Interest in investing in private market investments declines sharply when people learn about fees, liquidity, transparency and risk -- three in five are not at all interested, and another quarter only slightly interested.... Most Americans are uncomfortable with being automatically enrolled in funds in their workplace retirement savings accounts that include private market investments (68%) ... This resistance is particularly strong among older adults."  MORE >>

"[The] study took a large number of real-life investors from Morningstar's Retirement Manager database and ran them through a simulated retirement experience, including factors such as company matches, contribution limits, and most importantly, Social Security payments. In all cases, ... the presence of at least one private markets investment made at least a small contribution to the investor's retirement income. Notably, [there were] no outcomes in which the inclusion of semiliquid vehicles resulted in worse outcomes."  MORE >>

"An ESOP audit provides assurance that the right employees are receiving the right benefits at the right time. It also verifies that plan activity aligns with the governing plan document and accounting rules.... Auditor guidance and standards ... Phases of an ESOP audit ... Tips for a smoother audit ... Common pitfalls ... Valuation reviews: more than a compliance step ... Red flags in valuation reviews."  MORE >>

"The average 401(k) balance increased 5% from its previous record high in Q2 and marked the sixth quarter-over-quarter average balance increase in the last eight quarters (since Q3 2023). Despite ongoing concerns about the strength of the economy, both 401(k) and 403(b) participants were able to maintain steady savings rates through the third quarter.... 20% of Gen Z 401(k) participants are choosing to contribute to a Roth 401(k)."  MORE >>

"The average account balance for public-sector DC plan participants increased with age and tenure.... The average and median employee contribution amounts increased with age.... The average and median employee contribution rates (employee contributions divided by salary) were 6.4 percent and 3.7 percent.... Participants in their 20s had the largest allocations to target-date funds (71.3 percent)."  MORE >>

"According to recent data, the top 10 companies in the S&P 500 now account for nearly 40% of that index's total market capitalization. That level of concentration means that even broadly diversified index funds may be more exposed to sector-specific risks than many investors realize. In such an environment, the case for expanding the investment universe to include exposure to alternative investments becomes even more compelling."  MORE >>

"Private equity firms and other alternative asset managers ... are reshaping the once-staid world of life insurance.... Many are shifting liabilities to offshore affiliates subject to less detailed disclosure requirements than in the US. Insurers and those offshore entities are also pursuing higher returns with more sophisticated and potentially less liquid investments ... [P]rivate equity-affiliated life insurers are already shepherding retirement savings into those same opaque markets -- including for people who say they don't want that."  MORE >>

"The Auto Reenrollment Act [S 1831] ... builds on the bipartisan SECURE 2.0 and would further improve, simplify, and modernize retirement savings. SPARK is pleased to endorse this bill to encourage employers to adopt an automatic reenrollment design feature in their retirement plan.... Defined benefit plans have invested in private market investments for many years, and our members are working to explore ways to bring those investments to defined contribution plans.... Ensuring a stable legislative and regulatory framework that allows for continued retirement plan product innovation will be essential in this ongoing effort."  MORE >>

"[1] Catch-up 401(k) contributions for higher earners over 50 must be made to a Roth ... [2] 401(k), 403(b), and 457(b) plan contributions go up in 2026 ... [3] Traditional and Roth IRA limits for 2026 ... [4] Expanded savings for small businesses and the self-employed ... [5] Paper statement requirement ... [6] Health savings accounts (HSAs) ... 2025 year-end deadlines."  MORE >>

"Because the incentive award amount was tied in part to revenue generated by each adviser, the court labeled it a 'commission,' not a bonus -- a distinction that ultimately pushed the entire arrangement into ERISA territory.... The DOL noted that bonus programs often use complex formulas, include tenure-related rewards and sometimes allow payouts after certain types of termination from the program, such as death or disability. None of those features, in the agency's view, automatically transform an incentive plan into a pension plan designed to provide retirement income." [Shafer v. Morgan Stanley, No. 24-3141 (2d Cir. Jul. 9, 2025); DOL Advisory Opinion 2025-03A]  MORE >>