"The DOL [moved] to re-codify the DOL's 1975 regulation providing that a person will be deemed an investment advice fiduciary if all elements of a five-part test are met (the 'Five-Part Test') and confirm that the pre-amendment versions of the PTEs will be restored. At the same time, the DOL withdrew its preamble to PTE 2020-02, which contained an interpretation of the Five-Part Test that also gave rise to litigation."  MORE >>

"[T]he DOL republished Prohibited Transaction Exemption 2020-02 in its original unamended form as well as the five-part test for defining investment advice fiduciary that has been in effect for decades.... [The DOL] also withdrew in its entirety the 2020 preamble to the amended fiduciary rule ... which contained expansive and controversial interpretations of the five-part test."  MORE >>

"[T]he exemption for safe harbor 401(k) plans related to top-heavy testing is nullified when after-tax contributions are present. In such cases, the safe harbor plan must satisfy top-heavy requirements. However, the plan can take safe harbor nonelective and matching contributions into account in determining whether an employer has satisfied its top-heavy minimum-contribution obligation."  MORE >>

"Plan sponsors need to keep their plans in compliance with the nondiscrimination rules to remain qualified, and this is normally accomplished by performing annual testing that demonstrates compliance. In certain cases where a plan passes the testing by a significant margin, plan sponsors are permitted to perform the testing on a three-year cycle if there have been no significant changes to the plan or the workforce."  MORE >>

"Plan sponsors were hit with 15 [ERISA] complaints in recent weeks alleging they breached their fiduciary duties by retaining American Century's One Choice target-date fund suite, which for years has underperformed peers  ... The suits span plans of varying sizes, from roughly $120 million to more than $1 billion[.]"  MORE >>

"[1] Participants in larger plans may benefit from lower fees than those in smaller plans.... [2] Collective Investment Trusts now hold 42% of DC plan assets as sponsors seek lower costs.... [3] Despite over $6.3 trillion in DC plan outflows since 2015, this dynamic environment creates new opportunities for innovation and participant engagement. [4] DB plans ... account for a quarter of retirement distributions and support nearly 30 million people."  MORE >>

"[F]or federal employees and other government workers, the decision to convert money from a Traditional TSP to Roth may require more careful timing than the headlines suggest. As 2026 approaches, Roth conversions are still allowed, but the tax planning surrounding them is becoming more complex."  MORE >>

"[C]ustodians will typically transfer all the assets from the deceased IRA owner's account to the beneficiary, and then the year-of-death RMD can be paid out from the inherited account. But in this case, there was an extra layer of rules to consider. The surviving spouse wanted to do a spousal rollover ... However, if we processed a spousal rollover, and if the surviving spouse then took the year-of-death RMD before turning 59½, a 10% early distribution penalty would apply."  MORE >>

"A senior policy advisor for the Employee Benefits Security Administration (EBSA) stood by his earlier characterization of ESG as an example of Marxism at the Investment Adviser Association (IAA) Compliance Conference in Washington. The remarks could be a sign of things to come for ESG policy at the [DOL]."  MORE >>

"It's one thing to have access to advice; it's another thing entirely to implement it effectively, particularly when plan structures or service provider practices limit how advice is implemented. Defined contribution plans, by design, give individuals responsibility over their accounts. When that responsibility exists without the ability to meaningfully exercise choice, it's time to examine whether the system is functioning as intended."  MORE >>