The average balance in self-directed brokerage accounts at Schwab reached $383,087 at the end of Q3, reflecting a 5.7% increase from Q2 and a 10.3% rise year over year. This growth is attributed to strong gains in U.S. financial markets, with all major indices hitting record highs during the quarter, as reported in the Q3 SDBA Indicators Report by Charles Schwab.
As the year ends, plan sponsors and advisors are looking ahead to 2026 and the evolution of retirement plans. In 2025, there was an expansion of automatic savings, increased emphasis on managed accounts, and enhanced financial wellness programs. Halley Love from Bernstein Retirement indicates that the retirement industry will likely shift focus to pooled employer plans and new provisions from SECURE 2.0 legislation, as well as increasing participant engagement beyond just auto-enrollment. She advises that proactive steps can enhance compliance, improve recruitment and retention efforts, and better serve participants in the coming year.
After recently commenting on one of the numerous forfeiture reallocation lawsuits, the Labor Department is now seeking to become involved in another case. They have requested an extension to submit an amicus brief concerning a forfeiture reallocation lawsuit involving Honeywell International. In this case, the fiduciary defendants have successfully won their motion to dismiss, on two occasions, most recently last July, and this time with prejudice.
If you're a plan sponsor reading this, you might be thinking, "I’ll never find myself in that situation." However, the individual in question could very well be you. The case of Rick Case Enterprises -- a Florida automotive group that reportedly lost around 9% of its 401k assets during a recordkeeper conversion -- serves as a classic warning about the consequences of lax oversight. Here’s how this cautionary tale unfolded.
Six former and current employees filed a lawsuit against LifePoint Health on behalf of all individuals who participated in the company's 401k plan since August 15, 2018. The plaintiffs allege that LifePoint, its Board of Directors, and other fiduciaries breached their duties under ERISA by mismanaging the plan, failing to properly monitor it, and charging excessive fees. A federal district court judge in Tennessee has denied LifePoint's motion to dismiss the case, allowing the claims to proceed regarding the alleged improper use of forfeited 401k contributions.
A former equity partner at Husch Blackwell LLP has initiated a proposed class action lawsuit against the law firm, claiming it unlawfully withheld and misused employee 401k contributions. The case, filed in the U.S. District Court for the Western District of Missouri, alleges violations of ERISA for holding employee salary deferrals and using them to cover operational costs. The former partner argues that this practice deprived employees of potential investment growth and jeopardized the retirement plan. Husch Blackwell operates a 401k plan for about 400 participants, primarily funded through paycheck deductions.
Starting with plan years that begin on January 1, 2026, SECURE 2.0 introduces significant changes to the administration of catch-up contributions for specific higher-paid participants. Notably, plans are now required to implement mandatory Roth treatment for catch-up contributions made by HPPs. These new regulations present additional compliance, payroll, and communication challenges that plan sponsors should proactively address before the effective date. This article outlines the final rules and emphasizes key practical considerations for plan sponsors and administrators.
As the new year begins, business owners should focus on organizing their retirement plan reporting. It's time to inform your third-party administrator about any business changes from the previous year and provide complete employee census data for 401k compliance testing. While the information requests may seem repetitive, it's crucial to answer them thoroughly. Incomplete or incorrect data can impact test results, potentially leading to complicated corrections and penalties. Ensure your retirement plan is secure and compliant by providing your TPA with the necessary information to avoid issues during an audit.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
