Search the News Archive

Advisers Still Headed for More Fee Transparency

Excerpt: Fee disclosure regulations did not make it into the Federal Register before the new administration stepped in, but that is not necessarily a signal for advisers to relax about fee disclosure. In general, the industry is moving toward being more disclosure-oriented, said Roberta Ufford, principal at Groom Law Group, speaking with PLANADVISER.com. One of the drivers behind the move toward transparency is a fear of litigation from participants, she said. In general, the regulatory environment is shifting toward disclosure. 'If you've been waiting for 408(b)(2) regulations to update your disclosures, stop waiting,' Ufford said .... It's still a good time to re-examine your fee disclosure.

Missing RMDs Cost Investors $1.7B in Penalties in 2024

"About 6.7% of Vanguard-held individual retirement account investors missed RMDs in 2024, resulting in total tax penalties of approximately $1.7 billion.... Owners of smaller Vanguard IRAs were more likely to miss RMDs -- with 56.8% of investors with balances under $5,000 missing their RMD in 2024, compared with 2.5% of investors with balances of more than $1 million."

We’ve Reached a Tipping Point for 401(k) Retirement Plans

"The industry that encouraged workers to save is staring at a wave of retirees ready to begin drawing on these accounts. As retirees shift their mindset from saving to withdrawing, this introduces significantly different questions and responsibilities for plan sponsors, providers and advisers who have spent years working toward the accumulation side of the retirement equation."

Recordkeepers Prepare for Next Year’s ‘Roth-Only’ Catch-Up

"According to recordkeepers, plan sponsors and their payroll providers hold the critical data, since recordkeepers generally do not track FICA wages, so they cannot independently determine who crosses the threshold.... Recordkeepers expect more participants will encounter Roth options in 2026 and will need education on the differences between Roth and pre-tax contributions. "

IRS Posts Rules for HSAs in ACA Bronze, Catastrophic Plans

"[Notice 2026-5] affirmed a permanent safe harbor provision allowing HSA holders to receive telehealth and other remote care services before meeting their deductible, while remaining eligible to contribute to an HSA, effective for plan years beginning on or after January 1, 2025. The notice also clarified that, as of January 1, 2026, bronze and catastrophic plans available through a health care exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of a high-deductible health plan. The plans do not have to be purchased through an exchange to qualify for the relief."

401(k) Forfeiture Case Against Northrup Grumman Dismissed

"The plaintiffs contended that the plan documents stated that forfeiture funds should be used to restore participants' accounts or pay down plan expenses before being used to reduce company contributions.... [The judge] wrote that the plan document did not require the company to use forfeiture funds in any specific order. Instead, the employer had discretion to allocate the funds among the three listed purposes as it saw fit." [Garner v. Northrop Grumman Corp., No. 25-0439 (E.D. Va. Dec. 4, 2025)]

Nuts & Bolts: Where Advisers Can Start With AI

"DataDasher Inc. CEO Alexander Kearns claims financial advisers can save as many as 10 to 15 hours per week when AI is implemented in daily workflows with responsibilities such as pre-meeting briefs, follow-up communication and on-demand portfolio context."

House Members Introduce Bills on ERISA Litigation, Annuity Access

"The ERISA Litigation Reform Act [HR 6084] ... would toughen pleading standards for legal complaints under ERISA. The legislation clarifies the burden of proof in specific fiduciary-related claims and provides different standards for a court to stay discovery during the early stages of litigation.... [T]he Retirement Simplification and Clarity Act [HR 10467] ... would offer greater access to annuities. The bill introduces a provision for 'in-service rollovers,' allowing employees greater flexibility to secure guaranteed income through annuities while they are still actively working."

Second Circuit Confirms Dismissal of Lawsuit Against New York Teamsters’ Pension

"Though the 2nd Circuit found that the plaintiffs had standing to sue and acknowledged that private assets had more risk, it also determined that the investment did not breach fiduciary duty under [ERISA]." [Carlisle v. The Board of Trustees of The American Federation of The New York State Teamsters Conference Pension and Retirement Fund, No. 25-0511 (2d Cir. Nov. 21, 2025)]

DOL Opinion Fuels Clash Over Whether Morgan Stanley's Adviser Pay Is Really an ERISA Plan

"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]