Daily Article Digest - Updated Regularly

This digest contains a wide variety of the freshest source material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues regarding 401k, 403b and other retirement plans. Each listing contains a headline (hyperlinked to the source document), description, source of the item, and the month and year posted to this digest.

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Why the Stated Match Formula Is the Most Dangerous Line in Your 401k Plan Document

The matching formula in a retirement plan document, often seen as simple and predictable, can actually be a major source of compliance problems. While employers may assume it's straightforward and "set it and forget it," in reality, it frequently causes operational failures and costly corrective actions, making it one of the most common pitfalls for plan sponsors.

Source: Therosenbaumlawfirm.com, December 2025

IRIC Forecasts Retirement Trends to Watch in 2026

The Institutional Retirement Income Council forecasts that next year will see a significant shift toward broader adoption of in-plan retirement income solutions, driven by growing interest in retirement income innovation. In 2025, the industry focused on laying the groundwork through options like target-date funds, annuity marketplaces, systematic withdrawal programs, managed accounts with income features, and middleware integrations. By 2026, consultants and advisers are expected to implement standardized fiduciary evaluation frameworks to help plan sponsors assess, compare, and adopt these features.

Source: Plansponsor.com, December 2025

Joint Amicus Brief Backs Dismissal of 401k Forfeiture Complaint Against Wells Fargo

Several major interest groups -- including the ERISA Industry Committee, U.S. Chamber of Commerce, and National Retail Federation -- filed a joint amicus brief with the U.S. 8th Circuit Court of Appeals. They urged the court to uphold a lower court's June ruling that dismissed a 401k forfeiture complaint against Wells Fargo. The original decision, issued by U.S. District Judge John Tunheim, found that the plaintiff, Thomas Matula Jr., a former employee and plan participant, failed to state a valid claim. Matula appealed dismissal in July.

Source: Planadviser.com, December 2025

How the Contribution Limits Interact When an Employer Sponsors Multiple Retirement Plans

Annually, the IRS releases updated indexed limits and cost-of-living adjustments for the upcoming tax year, affecting various provisions of the Internal Revenue Code, including income tax deduction rates and retirement plan contribution limits. This article explains how the updated maximum dollar limits apply across multiple defined contribution retirement plans.

Source: Icemiller.com, December 2025

Recent Wins for Plan Sponsors in Response to Plan Forfeitures Litigation

Recent lawsuits have challenged 401k plan sponsors over using plan forfeitures to offset future employer contributions, even when allowed by plan documents. A California district court ruled in favor of the sponsor, stating such claims would add benefits not provided under the plan and conflict with ERISA's established practice of permitting forfeitures under plan terms. Similar rulings in Mississippi and Texas also supported employers.

Source: Haynesboone.com, December 2025

"Pension Predators" Hearing Targets Abusive ERISA Lawsuits

A House Education and Workforce Subcommittee held a hearing titled "Pension Predators: Stopping Class Action Abuse Against Workers’ Retirement." Chairman Rick Allen emphasized the need to protect workers' retirement savings and employers from what he called baseless, predatory class action lawsuits. He highlighted that ERISA safeguards benefits for over 155 million Americans, with plans collectively holding more than $14 trillion to ensure financial security.

Source: 401kspecialistmag.com, December 2025

INVEST Act in House Could Finally Be Vehicle to Allow CITs in 403bs

After years of delays, legislation allowing 403b retirement plans to use collective investment trusts is close to approval. The House of Representatives is expected to vote on the bipartisan INVEST Act next week. This package combines 20 previously passed bills, including the Retirement Fairness for Charities and Educational Institutions Act, which would amend securities laws to permit CITs and certain insurance accounts in 403b plans, aligning them with 401k rules. The Act was introduced on Dec. 2 by key lawmakers to reduce regulatory barriers, support small businesses, and expand investment options.

Source: 401kspecialistmag.com, December 2025

To Deem or Not to Deem: Navigating Deemed Roth Catch-Up Elections – A Practical Guide

As employers, payroll providers, recordkeepers, and plan administrators prepare for the 2026 Roth Catch-up Rule deadline, an important decision is whether to adopt the optional "deemed Roth election" provision. This provision allows employers to automatically classify catch-up contributions from high earners as Roth contributions once they reach the annual elective deferral limit. These FAQs explain the scope and application of the deemed Roth election provision, outlining its potential benefits and drawbacks for plan design.

Source: Truckerhuss.com, December 2025

Complying With the Required Minimum Distribution Rules When Participants Are Unresponsive or Uncooperative

Unresponsive or uncooperative participants pose serious challenges for tax-qualified retirement plans, creating administrative burdens, fiduciary risks, and potential compliance failures. This article examines these issues, reviews relevant regulatory guidance, and offers practical strategies for mitigating risk when participants scheduled to begin distributions fail to respond or cooperate -- commonly referred to as "recalcitrant participants."

Source: Truckerhuss.com, December 2025

2025 End-of-Year Plan Sponsor "To Do" List: Qualified Retirement Plans

As year-end approaches, employers should review their administrative, operational, and compliance responsibilities for qualified retirement plans. This includes confirming adoption of required amendments, updating processes in line with the SECURE Act and SECURE 2.0, and ensuring contributions, testing, and participant communications are on track. A proactive review now helps prevent compliance issues and supports plan integrity as we head into 2026. For convenience, the "To Do" list is divided into four categories.

Source: Swlaw.com, December 2025

Communicating in the Digital Age

Plan sponsors are increasingly using AI-powered, mobile-first, and highly personalized digital communication strategies to engage participants and improve retirement outcomes. Digital channels -- such as microsites, emails, podcasts, and videos -- are now the preferred method, with 75% of Bank of America's communications delivered digitally this year. A growing trend is short, targeted video content timed around key events like open enrollment or salary increases.

Source: Plansponsor.com, December 2025

How to Best Personalize Plan Communications

Personalized communication is seen as key to helping employees engage with retirement savings and financial literacy resources. A Human-Interest survey found that employees trust these tools, and 87% are more likely to stay with employers who provide them. The level of personalization depends on company size, understanding of participant needs, and collaboration with advisers and recordkeepers.

Source: Plansponsor.com, December 2025

A New Age for PEPs

Pooled employer plans have grown rapidly over the past four years as large employers seek lower governance, fiduciary responsibilities, and administrative costs. The SECURE 2.0 Act of 2022 expanded PEPs to include 403b plans, increasing access for nonprofits and educational institutions. It also extended startup tax credits, enabling small employers joining PEPs to receive a three-year credit to offset costs for new defined contribution plans.

Source: Planadviser.com, December 2025

When $1.8 Million Becomes the Fine Print in the 401k Fee Fight

In the 401k space, it's not just about managing plans; it's about managing perceptions of risk. When a plan is large enough to warrant institutional pricing but doesn't secure it, that omission can look like negligence in court. Whether you're an advisor, TPA, recordkeeper, or ERISA counsel, the key question remains: Can you demonstrate prudence if someone scrutinizes your process? This $1.8 million settlement isn't about scandal; it's about process. It underscores a simple truth: documentation outlasts memory, prudence outperforms guesswork, and time always wins.

Source: Jdsupra.com, December 2025

Did Your 401k Plan Meet the Discretionary Contribution Notice Requirements?

Plan sponsors using pre-approved 401k documents with discretionary matching contributions must comply with a new IRS requirement introduced in the 2022 Cycle 3 Restatement. This applies in any year a discretionary match is made. Despite the flexibility of discretionary matches, plans must meet the "definitely determinable benefits" standard by including a clear formula for contribution allocation. To comply, pre-approved plan documents must include specific language and satisfy two notice requirements.

Source: Brickergraydon.com, December 2025

Bad Tips for 401ks?

From 2025 to 2028, tipped workers can deduct up to $25,000 from federal income taxes, but this may negatively impact their 401k participation. Tips reported on Form W-2 remain subject to withholding and count as compensation for 401k deferrals. While pre-tax deferrals usually offer tax benefits, for tipped employees, they may create a disadvantage by turning otherwise tax-free income into taxable income.

Source: Benefitsattorney.com, December 2025

Bipartisan Bill to Streamline 401k Distribution Options, Expand In-Service Rollover Choices is Back

A bipartisan bill designed to simplify the 402(f)-notice process and provide clearer guidance and greater flexibility for Americans making retirement savings decisions has been reintroduced in Congress by Representatives Jimmy Panetta and Darin LaHood. Known as the Retirement Simplification and Clarity Act, the legislation -- reintroduced on November 26 -- also seeks to expand in-service rollover options to include annuities for individuals aged 50 and older.

Source: 401kspecialistmag.com, December 2025

Fifth Circuit Acts Quickly in Granting DOL Request to Dismiss Fiduciary Rule Appeals

The U.S. Court of Appeals for the Fifth Circuit dismissed the DOL's appeal regarding the Biden administration's Retirement Security Rule, also known as the fiduciary rule, on November 28, 2025. This concludes a lengthy legal dispute over whether one-time retirement investment advice, such as rollovers and annuity purchases, should be subject to ERISA's fiduciary standard. The DOL had previously requested multiple delays before filing an unopposed motion to withdraw the appeal. The case originated from nationwide stays issued by Texas district courts in July 2024, which blocked the enforcement of the rule before its planned implementation in September 2024.

Source: 401kspecialistmag.com, December 2025

Trump DOL to Abandon Fiduciary Rule Defense

The DOL has dropped its defense of the Biden-era fiduciary rule. The 2024 rule had been blocked by two federal district courts after challenges from insurance industry groups, and those cases were consolidated in the 5th Circuit Court of Appeals. After requesting multiple extensions in 2025, the DOL filed a motion to dismiss its appeal.

Source: Thinkadvisor.com, November 2025*

Verify ERISA Bonding Compliance

Plan fiduciaries, sponsors, and service providers should verify and document that all individuals involved with the plan are properly bonded. This protects the plan against fraud and dishonesty and helps avoid liability for breaching ERISA fiduciary responsibilities.

Source: Slphrbenefitsupdate.com, November 2025

Why did the Age 60-63 Catch-Up Contribution Limit Not Rise for 2026?

The IRS announced that the age 60–63 "super" catch-up contribution limit for 2026 will remain at $11,250 instead of increasing to $12,000 as some expected. The confusion stems from differences in how the IRS calculated the limit for 2025 compared to 2026.

Source: Plansponsor.com, November 2025

Study Examines How Retirees Should Manage Annuity Payouts From DC Plans

A National Bureau of Economic Research study by Horneff, Maurer, Mitchell, and Odenbreit analyzed how demographics should approach annuitization to protect against healthcare shocks in old age, including long-term care. It compared deferred, immediate, and variable annuities across groups based on sex and education. The authors note that about 70% of people aged 65+ will require LTC, which is costly and rarely covered by insurance. Most retirees rely on plan assets like defined contribution plans or lifetime income products, with Medicaid only stepping in after assets are nearly depleted.

Source: Napa-net.org, November 2025

The $3 Million Myth: Why Small Plans Still Need Big Fiduciary Thinking

Small 401k plans are not exempt from ERISA fiduciary duties. Whether a plan holds $3 million or $300 million, the same rules apply. Many small business owners mistakenly believe they're too small to face audits or lawsuits -- the "$3 Million Myth" or the “We're Small, So We're Fine" Trap. In reality, the IRS and DOL frequently audit small plans, and class-action attorneys increasingly target them.

Source: Jdsupra.com, November 2025

SEC Commissioner Signals Support for Private Assets in 401k Plans

SEC Commissioner Mark T. Uyeda suggested that 401k target-date funds could achieve better returns and diversification by incorporating private market investments. However, he noted that ERISA-related litigation risks are a major obstacle, and without legal clarity or reforms to reduce hindsight-driven lawsuits, plan sponsors may avoid offering such exposure even when it could be beneficial.

Source: Erisapracticecenter.com, November 2025

Lawmaker Introduces Bill Supporting Pleading Standards for ERISA Suits

Congressman Randy Fine introduced the ERISA Litigation Reform Act on Nov. 18. The bill aims to amend ERISA by clarifying the burden of proof in fiduciary-related claims and implementing a temporary stay on discovery during early litigation stages. Its goal is to create a fair and efficient legal framework for retirement plan fiduciaries, employers, and participants, while reducing meritless lawsuits that increase costs and threaten workers' retirement security.

Source: 401kspecialistmag.com, November 2025

Understanding the New Roth Catch-Up Contribution Rules

Starting in 2026, the SECURE 2.0 Act will require higher-paid employees to make catch-up contributions to 401k and 403b plans as Roth (after-tax) rather than pre-tax. This change affects payroll, plan documents, and compliance, so plan sponsors should prepare now to avoid errors and participant frustration.

Source: Watkinsross.com, November 2025

The Never Ending Story of the Amended Fiduciary Rule May Just Have Ended

The DOL has decided to end its appeals in the Consumer Choice and ACLI cases, filing a motion with the Fifth Circuit to dismiss them. Both appellees and intervenors agreed to the dismissal. While this concludes a lengthy legal battle, its impact will remain. The now-defunct Amended Fiduciary Rule shaped the SEC's "best interest" regulation, and several states continue to pursue best-interest standards for financial services. Parts of the investment market have shifted toward fiduciary-based models, a trend that may persist even without the Retirement Security Rule. It is still uncertain whether the DOL will revise the 1975 fiduciary rule or what future administrations will do.

Source: Wagnerlawgroup.com, November 2025

DOL Abandons Biden "Fiduciary Rule" Litigation

The DOL has filed a motion withdrawing its appeal of court challenges to the so-called fiduciary rule issued during the Biden administration. The motion to dismiss the appeal filed in the U.S. Court of Appeals for the Fifth Circuit indicated that the other parties do not oppose the motion.

Source: Psca.org, November 2025

Complaint Alleges Brooklyn Hospital Mismanaged Its 403b by Using Retail Share Class

One Brooklyn Health System Inc. is facing a complaint for investing assets from one of its 403b plans in retail share classes of J.P. Morgan target-date mutual funds rather than opting for lower-cost institutional share classes. The complaint states that the plan sponsor chose the retail class in 2014, which carried expense ratios between 0.86% and 1.03%. By 2015, other share classes became available with significantly lower expense ratios ranging from 0.05% to 0.67%.

Source: Plansponsor.com, November 2025

42% of Full-Time US Workers Lack Access to Retirement Plan

According to an updated report from the Economic Innovation Group, Census Bureau data shows that in 2024, 42% of private-sector employees aged 18 to 65 working full-time lacked access to retirement plans. This represents about 40.6 million people, and the number rises to 53.7 million when part-time workers are included.

Source: Planadviser.com, November 2025

AT&T ERISA Complaint Dismissed by Federal Judge

A California federal judge dismissed a lawsuit claiming AT&T violated ERISA by using 401k plan forfeitures to offset company contributions. The ruling aligns with similar decisions against other major companies, emphasizing that ERISA does not require fiduciaries to maximize account balances beyond promised benefits. The plaintiff also failed to show that plan assets were diverted or removed, a key element for an anti-inurement claim.

Source: Planadviser.com, November 2025

SEC Commissioner Uyeda Blasts "Paternalistic" Protection of 401k Investors

SEC Commissioner Mark Uyeda urged policymakers to allow 401k and other defined contribution plans to invest in private market assets. He argued that excluding these options limits retirement savers and noted that private equity, private credit, and similar investments can enhance diversification and improve risk-adjusted returns for long-term investors. "Regulation should provide guardrails, not gates," Uyeda said.

Source: Planadviser.com, November 2025

2026 Cost-of-Living Adjustments

Plan sponsors should evaluate cost-of-living adjustments to identify any changes that need to be communicated to employees during orientation sessions or through enrollment materials. Additionally, updated amounts may need to be entered into payroll systems or other HR platforms to ensure accurate tracking of contributions to employee benefit plans. Here is a chart of changes.

Source: Pkfod.com, November 2025

SECURE 2.0: Some Keys to Compliance

Staying compliant can be challenging, especially when navigating complex rules and deadlines outlined in the SECURE 2.0 Act. This includes requirements specific to 403b plans. At the recent ASPPA Annual Conference, John Griffin, Principal at ASC Institute, LLC, and Susan Poliquin, Director of Document Services at Definiti, explored key factors for meeting these requirements and deadlines.

Source: Ntsa-net.org, November 2025

Unlocking Value for Plan Sponsors: The Strategic Business Impact of In-Plan Annuities

The changing regulatory landscape around guaranteed income solutions creates significant advantages for both plan participants and sponsors. Participants benefit from guaranteed income solutions that strengthen retirement security, while sponsors have equally compelling reasons to adopt these options. This article highlights five key ways in-plan annuities can support plan sponsors.

Source: Georgetown.edu, November 2025

Read on Retirement: A New Generation of Retirement Plan Consultants

The retirement landscape is evolving rapidly, and the "2025 BlackRock Read on Retirement" survey shines a spotlight on the dynamic community of consultants who are driving this change. Innovative and laser-focused on growth, they are redefining what it means to serve clients and participants today, indicating a broader shift in the industry, where choice has emerged as a key pillar of effective client strategy.

Source: Blackrock.com, November 2025

2026 Retirement Plan Limits Step Up to the Plate

The IRS has announced adjustments to retirement plan limits for 2026, aimed at keeping retirement plans progressing. The update is compared to a previous celebratory moment when the firm's softball team won a local championship, emphasizing the theme of stepping up and moving forward. A chart of changes is provided.

Source: Belfint.com, November 2025

SECURE 2.0: Automatic Enrollment Mandate

Under SECURE 2.0, any retirement plan established after December 29, 2022, must include a Mandatory Automatic Enrollment feature. While most plans subject to this requirement will not need an immediate audit -- since new plans typically cover fewer than 100 employees -- the automatic enrollment rules they adopt closely mirror those applied to larger, grandfathered plans that do require audits. The accompanying chart offers a streamlined comparison of the mandate and available options.

Source: Belfint.com, November 2025

Wealth Management's Risky Push Into 401ks

The author compares their experience to the child in The Emperor's New Clothes, feeling skeptical about the growing trend of integrating wealth management into retirement plan advisory practices. Historically, retirement advisors have avoided working directly with individual participants, while wealth management firms have sought access to retirement assets without assuming fiduciary responsibility. Due to industry consolidation and revenue pressures, many firms now appear to be crossing that line.

Source: 401kspecialistmag.com, November 2025

Racial Gaps Persist in Retirement Savings

A report from Dayforce, titled "The Retirement Divide," highlights racial disparities in retirement plan participation and loan usage. In 2024, 84.6% of white workers participated in retirement plans, compared to 61.1% of Latino workers and 68.2% of Black workers. Participation among white workers has increased since 2022, while rates for Black and Latino workers have declined. Additionally, 26.4% of Black and Latino participants had active loans in their accounts, compared to 14.9% of white participants.

Source: 401kspecialistmag.com, November 2025

Fidelity Unit Warns of "Massive Outages Across Major Fidelity Platforms," in New Lawsuit

Fidelity Technology Group has filed a lawsuit against a Palo Alto software maker seeking an injunction to prevent Broadcom Inc. from terminating software access in two months. FTG argues that losing access would halt most RIA client servicing, disrupt Fidelity's operations, and potentially impact financial markets. The suit claims irreparable harm if the court does not intervene.

Source: Riabiz.com, November 2025*

Automotive Group Allegedly Lost 9% of 401k Assets During Recordkeeper Switch

An employee of Rick Case Enterprises Inc. filed a lawsuit in the Southern District of Florida alleging the company mismanaged its 401k plan during a recordkeeper switch from Empower Retirement to Principal Financial Group, causing unexplained losses. The complaint claims the company breached fiduciary duties under ERISA.

Source: Planadviser.com, November 2025

Target-Date Funds Continue Strong Growth

Target-date funds have grown significantly in popularity and assets, driven mainly by their role as the default investment in 401k plans and the rise of automatic enrollment. Total TDF assets now exceed $4 trillion, with annual growth of over 30% in the past 15 years. By the end of 2024, 30.3% of 401k assets were in TDFs, up from 15.8% in 2014. TDFs are offered in 85% of plans, and 87.2% of plans with a qualified default investment alternative use TDFs as the default option.

Source: Napa-net.org, November 2025

Contemplating the Future of Private Markets and Retirement

Policymakers and industry experts are exploring ways to expand investment opportunities for retirement savers in 401k and other defined contribution plans. At a recent event hosted by ICI and DCALTA, discussions focused on legal, operational, and policy considerations for giving retail investors access to private market assets. Experts agreed that private markets could improve retirement outcomes for DC plan participants, driven by several converging factors.

Source: Ici.org, November 2025

Law Firms Accused of Misusing Employee 401k Funds in Violation of ERISA

Plan participants have filed an ERISA class action against Husch Blackwell LLP, alleging the firm misused employee 401k contributions by diverting them into its operating account instead of transferring them promptly to the retirement plan. The case is pending in the U.S. District Court for the Western District of Missouri.

Source: Hallbenefitslaw.com, November 2025

Payroll Pitfalls and Practical Fixes for the New Mandatory Roth Catch-Up Requirement for Retirement Plans

Starting January 1, 2026, catch-up contributions for participants aged 50 and older who are classified as high-paid in 401k, 403b, and governmental 457b plans must be made on a Roth basis. Employers will need to identify these participants and ensure their catch-up contributions are Roth, even if their current election is pre-tax. The IRS has issued final regulations on this requirement, which will impact payroll systems, plan recordkeepers, and sponsors.

Source: Foley.com, November 2025

Roth Catch-Up Contributions: Final Regulations Issued

The Treasury has issued final regulations effective January 1, 2026, giving plan sponsors new options and required elections under SECURE/SECURE 2.0. Sponsors don't need to finalize choices until adopting the amendment by December 31, 2026, which will be provided by their document provider. These regulations aim to clarify complex provisions, offering choices that may simplify or complicate plan administration.

Source: Ferenczylaw.com, November 2025

Why 401k Consultants Should Be Included as Defendants in ERISA Litigation: Opinion

The author says that the time for giving consultants a free pass is over. According to him, "consultants are conflicted, opaque, compensated in hidden ways, instrumental in the CIT expansion, and central players in nearly every excessive-fee, revenue-sharing, and TDF-corruption scheme. Suing only the plan sponsor or recordkeeper is no longer sufficient. Consultants must be part of the defendant group."

Source: Commonsense401kproject.com, November 2025

Alternative Retirement Plan Investment: The Checklist

Executive Order No. 14330 is widely viewed as opening the door for private equity and cryptocurrency investments in defined contribution plans, but does it really? Fiduciary responsibilities still apply when adding nontraditional investment options to a plan's lineup. While much has been written about private equity and cryptocurrency as investment choices, fiduciaries should consider a range of questions before making a selection. The checklist here is not exhaustive but should provide a good starting point.

Source: Carltonfields.com, November 2025

Longevity Rises as Workers Retire Earlier

A recent Manulife John Hancock report shows that many people retire earlier than expected, with 52% leaving work before their planned date, on average at age 56. Longer retirements are becoming common as life expectancy in the U.S. remains at 79 and the number of centenarians is projected to quadruple over the next 30 years. The report emphasizes the increasing need for employers, advisors, and financial institutions to provide support and personalized education to help workers better prepare for a potentially longer retirement.

Source: 401kspecialistmag.com, November 2025

A Third of Fidelity 401ks Have Adopted Auto Portability

Since October 2022, more than 9,200 Fidelity record-kept 401k plans, covering 3.7 million participants, have adopted auto portability, a service that automatically rolls over small retirement balances when employees change jobs. Fidelity's Q3 2025 analysis also highlights growing interest in Roth savings vehicles, especially among younger generations, due to their long-term tax advantages.

Source: 401kspecialistmag.com, November 2025

Plan Sponsors Consider CITs for Private Market Exposure

A new report from Cerulli Associates finds that plan sponsors of defined contribution plans are increasingly interested in using collective investment trusts to incorporate private market strategies. Rather than offering these alternatives directly on participant menus, sponsors prefer to include them in professionally managed accounts such as target-date funds or CITs. CITs are gaining popularity due to their flexibility, lower operating costs, and negotiable fees, with assets now representing 38% of total 401k channel assets, up 30% since 2019.

Source: 401kspecialistmag.com, November 2025

Preparing for 2026: IRS Announces Updated Retirement Plan Limits Under Notice 2025-67

The IRS has announced the official 2026 contribution and benefit limits for qualified retirement plans, including 401k, 403b, and 457b, in Notice 2025-67. Employers and plan sponsors should review these updates promptly to ensure compliance and optimize participant savings.

Source: Sblgllp.com, November 2025

Judge Dismisses Forfeiture Case Against Peco

A federal judge dismissed another forfeiture reallocation lawsuit, emphasizing that plan documents govern fiduciary actions, Treasury regulations allow forfeiture reallocations, and participants received all promised benefits. The court also denied the plaintiff extra time to amend their arguments.

Source: Psca.org, November 2025

Fidelity, Centene Face ERISA Suit for Excessive Fees, Misused Forfeitures

A participant in the Centene Management Corp. Retirement Plan has filed a lawsuit against Centene Management and Fidelity, the plan's recordkeeper and trustee, alleging multiple breaches of fiduciary duty. The case, Clark v. Centene Corp. et al., filed in the U.S. District Court for the Northern District of California, claims violations of ERISA, including excessive administrative fees, improper use of forfeitures, and prohibited transactions.

Source: Planadviser.com, November 2025

ERISA Forfeiture Case Against WPP Group USA Dismissed

A federal judge dismissed a lawsuit accusing WPP Group USA Inc. and its retirement plan committee of misusing employee forfeitures to offset company costs instead of benefiting plan participants. The decision reflects a broader trend of mixed outcomes in forfeiture-related cases, with several recent dismissals, one case allowed to proceed, and another settled.

Source: Planadviser.com, November 2025

Mandatory Roth Catch-Up Contributions for 2026

Many wonder why so much has been written about the new Roth catch-up rules. The reason is clear: these changes could significantly affect nearly every 401k plan. The rules are complex and far from intuitive, meaning plan sponsors who fail to prepare risk facing compliance issues that could have been easily avoided.

Source: Legacyrsllc.com, November 2025

Cost-of-Living Adjustments for 2026

Fidelity has released a comprehensive three-page chart detailing the updated Retirement and Health Savings Account contribution limits for 2026. The chart provides a clear breakdown of key adjustments, including annual contribution limits for 401k, 403b, and 457b plans, catch-up contributions for individuals age 50 and older, and updated HSA limits for both individuals and families.

Source: Fidelity.com, November 2025

2026 Cost-of-Living Adjustments for Retirement Plans

The IRS has announced cost-of-living adjustments for retirement plan limits effective for the 2026 tax year. Key changes include an increase in the annual salary deferral limit for 401k and 403b plans to $24,500, and a rise in the highly compensated employee threshold to $160,000. A chart summarizing the major 2026 limits is provided.

Source: Benefitslawadvisor.com, November 2025

401k Participation Up as Employers Embrace SECURE 2.0 Flexibility

Employee participation in 401k plans continues to rise, even as contribution rates slightly decline amid economic uncertainty. Hardship withdrawals increased for the second year in a row (2.7% in 2024 vs. 2.1% in 2023), while plan loan usage fell, indicating a shift in how employees access funds. Plan design enhancements -- such as automatic enrollment, Roth options, diversified investments, and mobile access -- also gained traction.

Source: Asppa-net.org, November 2025

What Does Retirement Readiness Mean for the Evolving Workforce?

As the workforce continues to evolve, employers and retirement professionals face the challenge of anticipating and adapting to change. Industry experts at the recent SPARK conference in Palm Beach, Fla., emphasized that a strategy tailored to the diverse needs and interests of multiple generations in the workforce can be an effective approach.

Source: Asppa-net.org, November 2025

AI Tech to Spot Fiduciary Risks in Coming Years

Experts predict more businesses will adopt AI to reduce ERISA litigation risk. According to Transamerica's Prescience 2030 report, two-thirds of industry specialists believe AI can identify fiduciary risks earlier than traditional methods by detecting patterns such as unusual fund performance, hidden fees, administrative irregularities, and cybersecurity issues.

Source: 401kspecialistmag.com, November 2025

A Roadmap for Maximizing the Value of 3(38) Services

Many retirement plan service providers either oversimplify and exaggerate their value or fail to communicate it clearly. ERISA 3(38) fiduciary investment managers often fall into these categories. A recent court case offers guidance on how to market ERISA 3(38) services effectively -- without overstating their benefits -- and helps clients understand their ongoing responsibility to monitor these fiduciaries.

Source: Wealthmanagement.com, November 2025*

IRS Announces 2026 401k Contribution Limits

The IRS announced updated contribution and benefit limits for 2026. Key changes include the amount individuals can contribute to their 401k plans (as well as 403b) in 2026 has increased to $24,500, up from $23,500 for 2025. Full details here.

Source: Psca.org, November 2025

PSCA's 68th Annual Survey of 401k Plans Released

Employee participation in 401k plans continues to rise despite economic uncertainty. The PSCA Annual Survey reports that 87.4% of eligible employees contributed in the latest year, up from 86.9%. However, average contribution rates slightly declined: employee deferrals dropped to 7.7% (from 7.8%) and employer contributions to 4.8% (from 4.9%), resulting in a total savings rate of 12.5%. More survey data is provided in this news release.

Source: Psca.org, November 2025

SEPs vs 401k Plans – 3 Factors For 3 Client Profiles

SEPs are simple to set up and maintain, require no annual filings or compliance testing, and reduce the need for extensive participant education, making them attractive for small employers without dedicated HR or benefits staff. However, some small businesses may find a 401k plan better suited to their goals, particularly when considering contribution allocation, maximum deductible contributions, and eligibility or vesting requirements.

Source: Penchecks.com, November 2025

IRS Announces 2026 Cost of Living Adjustments to Various Retirement Plan Limits

The IRS has announced the 2026 cost-of-living adjustments for various retirement plan limits. Notably, the agency has retroactively increased the Roth Catch-up FICA wage threshold from $145,000 to $150,000. Plan sponsors must apply this updated limit when identifying Highly Paid Individuals for 2026. Any catch-up contributions made by these individuals must be designated as Roth contributions rather than pre-tax. This new threshold must be communicated promptly to all plan sponsors to ensure accurate identification of HPIs for the upcoming year.

Source: Ferenczylaw.com, November 2025

Catch the Catch-Up Final Regulations Before They Catch You Off-Guard

Section 603 of the SECURE Act 2.0 requires high earners eligible for catch-up contributions to make them on a Roth basis starting January 1, 2026. The Final Regulations issued in September of 2025 are effective as of January 1, 2027, but the Roth catch-up mandate continues to be effective as of January 1, 2026, such that good faith compliance with the rules is expected between January 1, 2026, and December 31, 2026. Most plans already offer Roth and catch-up options, so implementation will be widespread. The mandatory Rothification is upon us, driven by tax revenue goals, which ultimately benefits participants through Roth savings.

Source: Belfint.com, November 2025

An Explanation of the 2026 IRS Retirement Plan Limits

The IRS has released its annual update to retirement plan contribution limits, and while that's welcome news, a few changes have caused some confusion. Let's break them down together. First, we'll tackle Roth catch-up contributions, followed by the SECURE 2.0 "super catch-up" provision.

Source: Asppa-net.org, November 2025

Navigating the DOL's Next Fiduciary Move

The DOL plans to revisit and likely update the fiduciary advice rule in 2026, signaling major potential changes for plan sponsors and financial advisers. Below are the key points to watch.

Source: Therosenbaumlawfirm.com, November 2025

Female Small Biz Owners Are More Open to Starting a New Plan

A recent survey by Capital Group and C&C Multicultural of 1,000 U.S. small business owners and employees reveals generational and gender differences in retirement plan readiness and perceived importance. Most owners are optimistic and interested in offering plans, but Millennials lead the way, 77% view retirement plans as essential, and feel most prepared to offer them. Gen Z is less convinced (67%), and Gen X shows the lowest readiness (only 57%), despite being closer to retirement age.

Source: Psca.org, November 2025

Going Beyond DC Plans' Defaults

Target-date funds provide age-based risk levels but overlook individual circumstances and savings differences, according to Allspring. Their 2025 study shows retirees aged 65–69 feel 8–15% less secure about retirement compared to 2023. While defaults and simplification work well for younger workers, they become less effective as participants age, says Nate Miles of Allspring.

Source: Planadviser.com, November 2025

Anticipating the Next Wave of ERISA Lawsuits

Jamie Fleckner, chair of ERISA litigation at Goodwin Procter, mentioned at the PLANADVISER 360 Conference that pooled employer plans are likely to become a major target for lawsuits as they expand, with one recently surpassing $5 billion in assets. While Fleckner sees nothing fundamentally wrong with PEPs, he highlighted that plaintiffs' lawyers are entrepreneurial and drawn to large plans.

Source: Planadviser.com, November 2025

What's Hot in the Retirement Income Landscape?

At the EBRI Virtual Policy Forum on Sept. 18, industry experts discussed trends in retirement plan investments aimed at growing account balances and increasing retirement income. Katie Hockenmaier (Mercer) and Kevin Crain (Institutional Retirement Income Council) highlighted emerging features and strategies for accessing retirement revenue, noting the dynamic and evolving nature of retirement income planning.

Source: Napa-net.org, November 2025

Secure 2.0 Mandatory Roth Contributions Update: Here's What to Know for 2026

With the numerous SECURE 2.0 Act updates in recent years, it's easy to lose track of which changes truly affect your business. One of the most significant updates for employers is the new requirement for Roth catch-up contributions for high earners. This paper explains what this means, why it's happening, and what you should prioritize as 2026 approaches.

Source: Myubiquity.com, November 2025

72(t), SEPP Distributions From 401k

The questioner wants to know if 72(t) payments (Substantially Equal Periodic Payments) can be taken from a 401k plan, since they've received conflicting information about whether this rule applies only to IRAs or also to employer-sponsored retirement accounts.

Source: Iradictionary.com, November 2025

The Fiduciary Dilemma That Refuses to Die: The Conflicted Merit of 3(38) and 3(21)

ERISA's framework for 3(21) co-fiduciary advisors and 3(38) investment managers was meant to simplify plan governance, but in practice, it created complexity. Many plan sponsors assume delegation equals protection, yet without oversight, conflicts arise, often subtle and structural. This tension underpins today's fiduciary marketplace, where outsourcing and managed solutions still leave the core question unresolved: who truly safeguards participants?

Source: Fiduciarynews.com, November 2025

Rising Markets Don't Lift All Participants

Despite strong market performance, many employees -- especially low-income workers, younger individuals, women, and those with shorter job tenure -- are not adequately prepared for retirement. Vanguard’s How America Saves (2025) highlights persistent disparities in participation rates and account balances among these groups. To address these challenges, plan sponsors are encouraged to adopt innovative, non-fiduciary strategies in plan design and financial education that go beyond traditional approaches.

Source: Fiduciaryadvisors.biz, November 2025*

Practical Guide to 401k Plan Catch-Up Contribution Changes for 2026

Under the SECURE 2.0 Act of 2022, new rules affect catch-up contributions for retirement plans like 401k, 403b, and governmental 457b. Starting in 2025, employees aged 50 or older can make additional elective deferrals of $7,500, beyond the regular annual limit of $24,500. These rules do not apply to SIMPLE IRAs or SIMPLE 401ks, which follow separate regulations. The IRS issued proposed rules in January 2025, and the Treasury Department and IRS jointly released final regulations last month to clarify outstanding questions. This article reviews the key rule changes for catch-up contributions and provides practical tips for employers.

Source: Bakerdonelson.com, November 2025

Private Market Investments Take Off in Empower's Retirement Plans

Great-West Lifeco announced that over 200 retirement plan sponsors using Empower have integrated private market investments into their 401k plans. This development follows Empower's strategic push into private markets, which began in May, and aligns with an executive order by President Donald Trump directing federal agencies to support private investments in retirement plans.

Source: 401kspecialistmag.com, November 2025

Millennial Small Biz Owners More Open to Offering Retirement Plans Than Gen X

Capital Group research reveals a generational divide in readiness to start a retirement plan. Millennial small business owners are leading in prioritizing retirement benefits, with 77% considering retirement plans essential. In contrast, only 57% of Gen X owners feel ready to offer such plans, despite being closer to retirement. Gen Z owners are less likely to value employer-sponsored plans, with 67% seeing them as important.

Source: 401kspecialistmag.com, November 2025

When the IRS Comes Knocking, and You Tossed the Evidence

IRS audits are challenging, but they become even more difficult when a plan sponsor has lost or discarded key records that the IRS requests. Without documentation, defending actions becomes nearly impossible, and missing records -- like a 2015 spreadsheet -- can be seen not as a minor oversight but as negligence. Here's the cold, simple truth.

Source: Therosenbaumlawfirm.com, November 2025

What Retirement Plan Sponsors Need to Know About Cybersecurity

Cybersecurity is a year-round concern for retirement plan sponsors, not just during Cybersecurity Awareness Month. Developing and maintaining an incident response plan is a key fiduciary duty. This includes preparing for breaches, learning from past incidents, and training internal teams. A strong cybersecurity plan not only protects sensitive data but also boosts employee confidence and demonstrates responsible plan management. This article looks at how such a cybersecurity response plan might be implemented.

Source: Planpilot.com, November 2025

IBM Faces ERISA Case Over TDF Performance

Former IBM employees filed a lawsuit claiming the company violated its fiduciary duties under ERISA by failing to replace underperforming target-date and Vanguard mutual funds. The complaint alleges that IBM's continued use of its proprietary All-in-One Life Cycle funds and certain Vanguard options cost plan participants $1.9 billion in lost returns compared to better-performing alternatives like Fidelity and T. Rowe Price.

Source: Planadviser.com, November 2025

Hardship Withdrawals are on the Rise

Without emergency savings, employees are twice as likely to turn to workplace retirement accounts to cover unexpected costs, according to new data shared by Fidelity Investments. And citing data from its 2025 Global Financial Wellness Report, Fidelity notes that the cost of living and impact of inflation lead the way as the top stressor for almost 7 in 10 workers (68%), followed by the state of the economy (62%), and global political events (54%). Consequently, as more employees dip into their retirement savings, the absence of emergency funds increasingly threatens both their long-term financial security and their ability to retire on time.

Source: Psca.org, November 2025

Small Businesses Lag in Auto-Enrollment, Participation

Smaller retirement plan sponsors are less inclined to implement automatic enrollment, according to Vanguard's recent report, "How America Saves 2025: Small Business Edition." These smaller plans typically exhibit lower participation rates than their larger counterparts, largely due to limited auto-enrollment adoption and participants' generally lower income levels. The report draws on data collected at the end of 2024 from 21,261 small plans -- defined as those with up to $50 million in assets -- and 1,400 larger plans.

Source: Psca.org, November 2025

Building a Strong Retirement Practice Starts With Listening

"Listen with intention and keep the end goal in sight." This was the central message of the October 28 session at the ASPPA Annual Conference. Amy Garman, QKA®, TPA Internal Retirement Plan Counselor at Capital Group, and Mickie Murphy, CPC™, QPA™, QKC, Director of ERISA Compliance at Prime Capital Financial, emphasized the power of purposeful listening and clear communication. These skills are essential for retirement plan professionals, not only to close sales but also to build lasting client relationships and, ultimately, to serve participants and their families effectively.

Source: Napa-net.org, November 2025

When Finance Eats Function: Private Equity, Fiduciary Advice, and the Risk to 401k Outcomes

As private equity reshapes the retirement advisory landscape and policy shifts open the door to more complex investment options, fiduciaries face a growing responsibility to look beyond surface-level service. Ownership structures, incentive models, and fee flows can subtly, but significantly, impact participant outcomes. The parallels with other service sectors are instructive: when financial engineering overshadows functional integrity, quality can erode. Prudent sponsors and committees must stay vigilant, ask hard questions, and demand transparency, not just to meet regulatory standards, but to uphold the trust placed in them by plan participants. The paper reviews four fiduciary risk channels to watch.

Source: Multnomahgroup.com, November 2025

No Harm, No Foul? Not Exactly: Lessons From the American Airlines ESG Case

In Seidman v. American Airlines, the court acknowledged allegations of fiduciary breaches related to ESG (environmental, social, and governance) investments but ruled that without evidence of financial harm, no recovery could be granted. The decision doesn't endorse ESG investing; it simply underscores that fiduciary claims require proof of monetary loss. This serves as a cautionary note for plan sponsors and fiduciaries.

Source: Jdsupra.com, November 2025

The Undiscovered Country: Why 401k Plan Providers Must Focus on Participant Outcomes

The author reflects on the metaphor of "the undiscovered country" from Star Trek VI and Hamlet, likening it to retirement. While not death, retirement represents a mysterious and often intimidating life transition. The passage emphasizes that despite decades of focus on fees, investments, and compliance, retirement planning remains an uncertain and underprepared journey for many participants.

Source: Jdsupra.com, November 2025

Ready or Not: Preparing for the Final Roth and Super Catch-Up Rules

The IRS has finalized regulations under SECURE 2.0, addressing key provisions such as the Roth catch-up contributions for high-income earners and expanded "Super Catch-Up" limits for participants aged 60 to 63. These updates offer valuable guidance for plan sponsors and administrators and prompt important considerations regarding plan structure and compliance. Seyfarth's Employee Benefits team will provide practical insights into the implications of these changes.

Source: Seyfarth.com, November 2025

SECURE 2.0 Act Retirement Plan Update: Roth Catch-Up Contributions in 2026

On September 16, 2025, the IRS issued final regulations implementing the Roth catch-up contribution rules under the SECURE 2.0 Act of 2022. These rules require employers to change how catch-up contributions are taxed for high-income earners and to meet new administrative requirements. Employers are expected to comply in good faith starting January 1, 2026. With the final regulations now in place, employers need to begin preparing for both operational and documentation compliance.

Source: Quarles.com, November 2025

Guideline Accused of Corporate Espionage by Human Interest

Human Interest Inc. has renewed its legal claims against two former employees and Guideline Inc., accusing them of corporate espionage. The allegations include the theft of sensitive data and strategic documents, which were allegedly shared with Guideline's executives. The case, filed in the U.S. District Court for the District of Utah, includes multiple amended complaints and references internal communications among the accused, who referred to their plan as the "Sterri Takeover."

Source: Planadviser.com, November 2025

Canada's Retirement System Ranking Improves Marginally in 2025

Canada's pension system received a better score in an ongoing survey of programs around the world, but still has room for improvement. Canada was given a grade of B, the same as last year, by the Mercer CFA Global Institute Pension Index 2025, but its score rose to 70.4 out of 100 from 68.4.

Source: Pensionpulse.blogspot.com, November 2025

401k Excessive Fee Suit Parties Strike $1.8 Million Deal

The parties involved in an excessive fee lawsuit -- originally seeking to include forfeitures but ultimately unsuccessful -- have settled. In the 2022 case, plaintiffs Tera Bozzini and Adrian Gonzales alleged that Ferguson Enterprises LLC mismanaged its $2.6 billion 401k plan. They claimed the company failed to use its scale to negotiate better terms, offered overly expensive investment options, and permitted conflicted service providers, including Prudential and CapFinancial, to charge excessive fees and earn substantial profits.

Source: Napa-net.org, November 2025

New Push for Mandatory 401k Contributions Emerges

A bill, the Saving for the Future Act (H.R. 5887), has been reintroduced in the U.S. House of Representatives. It would require employers to contribute at least 50 cents per hour worked into each employee's retirement savings. If a traditional retirement plan like a 40k isn't available, the contributions would go into a universal personal account. The program is modeled after the UK’s National Employment Savings Trust and aims to combine emergency savings with retirement planning.

Source: Napa-net.org, November 2025

Talking Points: A PEP-spective on Fiduciary Reviews

The DOL released a three-part proposed rule focused on pooled employer plans, offering fiduciary guidance that extends beyond PEPs. The publication, titled "Pooled Employer Plans: Big Plans for Small Businesses," reflects an intent to support small businesses. However, the author suggests that the guidance is broadly applicable to various emerging retirement plan options, such as cryptocurrency, managed accounts, and retirement income solutions.

Source: Napa-net.org, November 2025

The Evolution of DC Plan Class Action Litigation in 2025

As we approach the final months of an eventful year, benefits litigation has proven to be a dynamic area, especially in the realm of ERISA class actions involving defined contribution plans such as 401k and 403b accounts. Throughout 2025, there has been a notable uptick in class action lawsuits targeting these plans, driven in large part by a surge in new forfeiture-related claims. This article explores key developments and emerging trends in ERISA litigation affecting defined contribution plans, beginning with the latest wave of forfeiture lawsuits.

Source: Mayerbrown.com, November 2025

Why Fiduciary Liability Insurance Is Necessary as PE Enters the 401k Space

Private equity is becoming increasingly prominent in retirement planning, offering new investment opportunities. However, it carries notable risks, including high fees, limited liquidity, and less regulatory maturity. As plan features grow more complex, the potential for fiduciary missteps increases. This underscores the need for strong risk management practices and highlights the importance of fiduciary liability insurance to protect plan sponsors.

Source: Insurancenewsnet.com, November 2025

Democratic Senators Highlight Risks of Alternative Assets in Retirement Plans

Senate Democrats contended that private equity funds often charge high fees and deliver returns below those of public markets. They also noted that extended lock-up periods can restrict savers from accessing their funds during emergencies. Furthermore, they urged the DOL and the SEC to enhance oversight, transparency, and due diligence standards before broadening access to private and digital assets.

Source: Findknowdo.com, November 2025

Six Myths About Service Providers: How Believing These Can Increase ERISA Fiduciary Liability

Fiduciary breach litigation in the employee benefits sector has surged in recent years, drawing increased attention from class action attorneys and a growing pool of potential plaintiffs. As a result, the actions of plan fiduciaries are under intense scrutiny. Yet, many fiduciaries still operate under misconceptions about their legal responsibilities, misunderstandings that can significantly undermine their ability to safeguard themselves. This article reviews six prevalent myths that may heighten the risk of fiduciary liability.

Source: Cohenbuckmann.com, November 2025

CAPTRUST'S November 2025 Fiduciary Update

Topics in this update include Forfeiture Cases Trending in Favor of Plan Fiduciaries, American Airlines Loyalty Breach Does Not Result in Financial Penalties, Fees and Investment Performance Cases Update, and Discretionary Investment Advisor Loses Summary Judgment; Plan Sponsor Fiduciaries Win.

Source: Captrust.com, November 2025

Cyber Security Best Practices for Fiduciaries

There are many facets to cybersecurity, many nuances and hard realities. A professional uniquely positioned to discuss cybersecurity in the context of retirement plans offers her insights on protecting assets, balances, sensitive information and more from unauthorized access.

Source: Psca.org, November 2025*

Retirement Pros Urge Caution With Alts in DC Plans

A panel of retirement and investment experts recommends a cautious and well-documented approach to adding private assets to defined contribution plan menus. While DC plans can include alternative investments, such as private assets, the panel emphasized that implementation should be gradual. They suggested that the most suitable way to incorporate these alternatives is through modest allocations in professionally managed multi-asset products, particularly target-date funds.

Source: Planadviser.com, November 2025

2026 IRS Retirement Plan Contribution Limits All But Official

While the IRS has yet to officially announce the 2026 retirement plan contribution limits, predictions from Mercer and Milliman suggest there won't be many surprises. Both firms anticipate a $1,000 increase in the employee contribution limit for 401k, 403b, and eligible 457 plans, raising the cap from $23,500 in 2025 to $24,500 in 2026. Additionally, the catch-up contribution limit for individuals aged 50 and older is expected to rise from $7,500 to $8,000.

Source: 401kspecialistmag.com, November 2025

Involuntary Distributions and Force Out Limits

When employees leave a company, their retirement accounts -- especially small, inactive ones -- often remain behind, creating administrative burdens and compliance risks. To manage this, companies can use involuntary distributions (also called force-outs) to automatically cash out or roll over these small balances if they meet certain criteria. Understanding the rules around forced 401k and IRA distributions is essential for proper implementation. This article explains more about why these provisions are important and how the rules work.

Source: Watkinsross.com, November 2025

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