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.

Use the SEARCH feature to located specific items from this digest and from our ARCHIVE.

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

The $1,000 Boost and the 2026 Catch-Up Curveball

Looking ahead to 2026, upcoming changes to 401k contribution rules are more than minor updates -- they're significant structural reforms. Every plan sponsor, fiduciary, and committed saver should take note. Ignoring these changes could have serious consequences.

Source: Therosenbaumlawfirm.com, October 2025

Retirement Challenges Facing Gen-X

In 2025, the U.S. reaches "Peak 65®," with a record number of Americans turning 65. While Baby Boomers are currently experiencing this shift, Generation X (ages 45–60) faces even greater retirement insecurity. This paper outlines Gen-X's challenges, including a lack of protected income, low financial literacy, and evolving work and caregiving roles. It also discusses potential solutions like annuities, better access to financial advice, and new income strategies. Without significant action, Gen-X and future generations risk entering retirement with serious financial vulnerability.

Source: Protectedincome.org, October 2025

Can You Deliver a 403b UA Notice Electronically?

Employers may deliver the Universal Availability notice for a 403b plan either in writing or electronically, as long as employees have reliable access to the electronic system and the notice is structured to effectively reach all eligible employees.

Source: Plansponsor.com, October 2025

After 4 Weeks, How the Government Shutdown Is Affecting Retirement Plans

The ongoing government shutdown has disrupted federal agencies, including the IRS, preventing them from releasing critical updates -- such as annual retirement plan contribution limits -- which could impact retirement planning if delays continue.

Source: Plansponsor.com, October 2025

How Participant Education Can Help Keep Retirement Plan Fees in Check

Educating and engaging retirement plan participants can help reduce plan fees. According to Jenny Kiesewetter of Fisher Phillips, informed participants tend to make smarter financial decisions -- like avoiding loans and early withdrawals, and selecting lower-cost investments -- which ultimately lowers their individual costs.

Source: Napa-net.org, October 2025

2026 IRS Limits Forecast – Final Estimates

With the publication of the September 2025 consumer price index, all 12 of this year's monthly CPI rates are set. As the government shutdown continues, there may be a delay in the IRS publishing the final limits. This is Milliman's final estimate of the 2026 limits.

Source: Milliman.com, October 2025

Don't Let AI Become Your Liability: Smart Steps for Plan Sponsors

AI often seems magical -- forecasting trends, tailoring messages, and accelerating decision-making. Yet in the fiduciary realm, relying on that magic without proper safeguards can lead straight to legal trouble. Before activating the 'AI switch,' every plan sponsor must take deliberate, informed steps.

Source: Jdsupra.com, October 2025

Crypto and Retirement Plans: Fiduciary Considerations

Cryptocurrency has gained attention as a high-return but volatile investment, prompting debate about its place in retirement plans. Although the DOL has withdrawn previous guidance, leaving no active rules on crypto in benefit plans, fiduciaries under ERISA must still adhere to standards of prudence, diversification, and loyalty to participants when considering such investments.

Source: Cshco.com, October 2025

Preparing for the Roth Catch-up Contribution Mandate: A Series

The IRS has released final regulations for a new mandate requiring Roth catch-up contributions. These rules are complex and demand that plan sponsors make strategic decisions, especially with the January 1, 2026 deadline approaching. While 2026 allows for good faith compliance, full adherence is expected by 2027. Sponsors must begin planning now, considering factors like payroll provider and recordkeeper capabilities. This article is the first in a series aimed at helping sponsors navigate these decisions.

Source: Wtwco.com, October 2025

New Corporate Espionage Claims Emerge, Centered on Two Highly Valued 401k Admin Startups

Two brothers working at Human Interest are accused of corporate espionage. While employed as junior inside sales representatives, they allegedly shared confidential company information -- including partnership leads, customer data, and strategic documents -- with executives at rival firm Guideline. The complaint claims this sensitive data was sent directly to Guideline's CEO, Kevin Busque, and CFO, Steven Wu.

Source: Techcrunch.com, October 2025

How 3(38) Fiduciaries Limit, but Don't Erase, Plan Sponsor Liability

The Caesars Holdings case highlights that while hiring a 3(38) fiduciary can help plan sponsors reduce their risk of ERISA litigation, it doesn't eliminate their responsibilities. A federal court cleared Caesars of liability but held its 3(38) investment manager, Russell Investments, accountable. Under ERISA, employers must act with prudence and loyalty toward plan participants. Delegating investment duties to a 3(38) fiduciary shifts some risk, but sponsors must still carefully select and monitor that fiduciary to remain compliant.

Source: Plansponsor.com, October 2025

Incorporating Annuities in DC Plans

The PLANSPONSOR Roadmap Livestream Series on Retirement Income explored how to incorporate annuities into defined contribution plans. Experts discussed fiduciary responsibilities, plan design, and communication strategies. They shared insights from sponsors and providers who have successfully added lifetime income options. Bruce Lanser of TruSource Advisors emphasized that plan sponsors must first assess whether their participants are a suitable match for annuity-based income solutions.

Source: Plansponsor.com, October 2025

Intel Plaintiffs Pursue SCOTUS Scrutiny of Alt Investment Decision(s)

Plaintiffs, including former Intel employee Winston Anderson, are asking the U.S. Supreme Court to review a case involving Intel's retirement plans. They argue that fiduciaries breached their duties by investing billions in speculative, illiquid, and opaque hedge funds and private equity through custom target-date funds. After losing in both district and appellate courts, the plaintiffs claim the Ninth Circuit's decision was legally flawed and harmful, potentially shielding fiduciaries from accountability under ERISA when making reckless investment choices.

Source: Napa-net.org, October 2025

DC Plan Innovation and RLP: Opinion

Securian Financial and Custodia Financial have formed a strategic partnership to offer Custodia's Retirement Loan Protection (RLP) program. This innovative feature protects 401k loans from default in cases of job loss, disability, or death. While insurance-based products like RLP often face skepticism due to perceptions of consumer exploitation, the release highlights that meaningful innovation still exists in the insurance sector and can benefit consumers.

Source: Businessofbenefits.com, October 2025*

More Than a Third of Gen X Plans to Delay Retirement

Generation X (ages 45–60) is facing significant retirement challenges. They've endured eight recessions, carry student loan debt, and face high healthcare and housing costs, all of which have limited their ability to save during peak earning years. Traditional pensions have largely disappeared -- only 14% of Gen X has one -- making them the first generation relying almost entirely on 401k plans. Additionally, 24% of Gen X supports both aging parents and children, adding financial strain. These factors contribute to Gen X being the least confident and least financially prepared for retirement. A recent paper from the Alliance’s Retirement Income Institute explores these issues in depth.

Source: 401kspecialistmag.com, October 2025

Workers, Plan Sponsors Split on Market Outlook and Retirement Income

American Century Investments' National Retirement Survey reveals a disconnect between workers and employers regarding retirement planning. While 77% of employers believe workers can tolerate market losses over 10%, nearly half of workers say they can only handle losses under 10%, and just 19% are very accepting of market risk. Additionally, there's a mismatch in investment preferences: only 14% of workers favor aggressive target-date funds (TDFs), compared to 38% of plan sponsors. Most workers prefer moderate (68%) or conservative (18%) TDFs.

Source: 401kspecialistmag.com, October 2025

Lost and Not Yet Found: Retirement Plan Sponsors' Duties Regarding Missing or Unresponsive Plan Participants

Each year, Americans invest billions of dollars into retirement accounts to prepare for their future. However, when it's time to access those funds, many participants are either unreachable or fail to cash the checks sent to them. This article outlines the responsibilities of plan sponsors in handling missing or unresponsive participants and explores alternative methods for managing the associated retirement plan assets.

Source: Sidley.com, October 2025

Getting Into the Details of Roth Catch-Ups

Starting in 2026, the Roth catch-up provision under the SECURE 2.0 Act will take effect on a "good faith" basis, introducing new complexities for retirement plan fiduciaries. As part of a broader shift toward "Rothification," this rule requires certain catch-up contributions to be made on a Roth basis -- without the upfront tax deduction of traditional contributions. Legal experts, including Jenny Kiesewetter of Fisher Phillips, emphasize that while the provision aims to raise revenue, it also presents hidden implementation challenges that plan sponsors must carefully navigate.

Source: Psca.org, October 2025

Roth Compliance Tops Advisers' Q4 To-Do List

In 2025, retirement plan advisers face especially important responsibilities, with the fourth quarter bringing critical compliance tasks. The most significant issue is addressing the mandatory Roth catch-up contribution requirement introduced by the SECURE 2.0 Act of 2022, which affects plan health and participant readiness.

Source: Planadviser.com, October 2025

How Advisers Right Retirement Planning Gone Awry

Many Americans feel uncertain and overwhelmed when managing their retirement plans, especially without professional guidance. A Pontera survey found that two-thirds of savers lack control over key decisions, and fewer than 20% feel highly knowledgeable about managing retirement or college savings. Additionally, 42% reported feeling stressed, anxious, or confused by the process.

Source: Planadviser.com, October 2025

Cornell 403b Plan Lawsuit Returns to District Court

The case Cunningham v. Cornell University, a prominent retirement industry lawsuit, is returning to the U.S. District Court for the Southern District of New York after the Supreme Court ruled in favor of the plaintiffs. The 2nd Circuit Court of Appeals remanded the case due to the parties' inability to agree on next steps. The district judge will now determine whether to proceed with summary judgment motions, reopen discovery, or offer the plaintiffs a jury trial.

Source: Planadviser.com, October 2025

Suit Says Plan Sponsor "Uncritically Relied" on Advisor TDF Choice

A lawsuit has been filed against the fiduciaries and advisor of the Elanco US, Inc. 401k Plan, alleging they breached their fiduciary duties by continuing to invest in an underperforming target-date fund. The plaintiffs, acting on behalf of plan participants and beneficiaries, claim that the decision to retain the American Century TDFs was imprudent given the information available to the Plan Committee. The case is being heard in the U.S. District Court for the Southern District of Indiana.

Source: Napa-net.org, October 2025

Resources for Tracking State and Local Retirement Initiatives

This article provides an overview of state-level retirement programs designed for private-sector employees. It also includes a collection of related resources from Mercer and other third-party sources. Please note that this list is updated periodically and may not always reflect the most recent changes in every state.

Source: Mercer.com, October 2025

Mandatory Roth 401k and 403b Catch-Up Contributions Under the SECURE 2.0 Act

The SECURE 2.0 Act of 2022 introduced various measures aimed at expanding Roth treatment options within retirement plans, including a requirement that catch-up contributions made by high-wage employees be treated as Roth contributions. With final IRS regulations issued in September 2025, many implementation uncertainties have been clarified. Despite this guidance, retirement plan sponsors continue to face complexity in navigating the rules and must evaluate key decision points to ensure compliance. Key decision points for plan sponsors are reviewed in this article.

Source: Ipbtax.com, October 2025

Opportunity of a Lifetime: DOL Approves Lifetime Income Product as a Default Investment Option in ERISA 401k Plans

The DOL recently issued Advisory Opinion 2025-04A, affirming that a lifetime income product may qualify as a Qualified Default Investment Alternative under ERISA. This decision reflects a broader movement by the DOL, Congress, and plan sponsors to incorporate features traditionally found in defined benefit pension plans into defined contribution 401k plans.

Source: Willkie.com, October 2025

Retirement Throughout the Ages: The American Middle Class

"Retirement Throughout the Ages: The American Middle Class" is a joint report by the Transamerica Center for Retirement Studies and Transamerica Institute that examines the priorities, health, finances, and retirement outlook of middle-class Americans aged 18 and older. It compares different age groups -- 20s through 70s+ -- and offers insights into their work and caregiving experiences. The report also includes recommendations for individuals, employers, and policymakers, along with a curated reading list for further exploration.

Source: Transamericainstitute.org, October 2025

Retirement Plan Amendments: Are You Sure You Know Your Deadline?

Under IRS Notice 2024-2, most retirement plan sponsors have until the end of 2026 or later to amend their plans to incorporate provisions from the CARES Act, Miners Act, Relief Act, SECURE Act, and SECURE 2.0. However, this extension does not apply to Section 457b plans maintained by tax-exempt organizations, which must be amended by December 31, 2025. Amendment deadlines vary depending on the type of retirement plan. Here's a list of the current amendment deadlines by plan type.

Source: Spencerfane.com, October 2025

SECURE 2.0 Roth Deadline Tops Year-End Action Item List

Plan sponsors always have a full plate, but 2025 brings heightened importance, according to Mike Webb of CAPTRUST. As the fourth quarter progresses, experts emphasize key year-end actions for maintaining retirement plan compliance and health. The top priority this year: deciding how to implement the mandatory Roth catch-up contribution rule under the SECURE 2.0 Act of 2022.

Source: Plansponsor.com, October 2025

2025 Retirement Plan Year-End Amendments and Operational Compliance

As the leaves change and the holidays approach, it's a perfect time for retirement plan sponsors to review their plans to ensure year-end compliance. Even though the deadline to adopt formal amendments for legislative changes under the SECURE Act, CARES Act, and SECURE 2.0 is generally not until December 31, 2026, there are still important steps to take now, including: Reviewing plan documents to identify needed updates or amendments; Confirming operational compliance with legal changes that are already in effect; and Providing required participant notices, including safe harbor notices and QDIA notices, before applicable deadlines.

Source: Groom.com, October 2025

Caesars Fiduciaries Hit Jackpot Due to Prudent Processes

The prudent appointment and oversight of Russell Investments Trust Company as an ERISA section 3(38) investment manager by the Caesars Entertainment Corporation 401k Plan Committee highlights the value of well-documented fiduciary practices. This decision not only benefited the Committee and plan sponsor but also demonstrated how sound processes can help fiduciaries avoid prolonged litigation, even in an environment where lawsuits are common despite no evidence of wrongdoing.

Source: Erisalitigation.com, October 2025

Viewing ESG amd ERISA Through a Political Lens: Does the American Airlines Relief Make Sense?

Taking the two American Airlines decisions together, the result is that even though American Airlines followed a prudent investment selection process and there were no monetary damages to award because no losses could be tied to American's decisions, the court injected itself into running the plans permanently and ordered that annual disclosures not required by ERISA be given to all participants. The decision also prohibits proxy voting to support ESG-related measures.

Source: Cohenbuckmann.com, October 2025

Millennials Torn Between Homeownership and Saving for Retirement

Millennials are facing a tough financial dilemma due to stabilized yet high housing prices. Many feel forced to choose between buying a home and saving for retirement. A study by Nationwide Retirement Institute reveals that 58% believe they can't do both. Rising housing costs are seen as major obstacles to retirement savings, with 35% calling them the biggest hurdle and 46% viewing mortgages and home equity loans as the greatest threat to a secure retirement. Since early 2025, 60% have adjusted their retirement plans in response to these financial pressures, leading to growing frustration over the lack of affordability and difficulty in building wealth through property ownership.

Source: 401kspecialistmag.com, October 2025

The Rise of CITs -- Why They're a Compelling Path for Asset Managers Entering the 401k Plan Market: Podcast

In this podcast, asset management partners Eric Requenez and Jessica Reece, along with benefits partner Josh Lichtenstein, discuss the advantages of collective investment trusts for asset managers in raising and investing funds. They anticipate that CITs will gain significance and complexity in the future, particularly with President Trump's backing for broader access to alternative investments within 401k and defined contribution plans, potentially unlocking substantial retirement assets.

Source: Ropesgray.com, October 2025*

Can State Auto-IRA Accounts Be Rolled Over Into a 401k?

In response to an inquiry from an advisor in Minnesota, the ERISA consultants at the Retirement Learning Center examine the possibility of transferring CalSavers accounts of a seller's employees to a buyer's 401k plan during a merger or acquisition.

Source: Psca.org, October 2025

Where Is the DOL Going With the Fiduciary Rule?

In September, the DOL announced plans to revisit the definition of fiduciary adviser, intending to issue a new rule by 2026. This comes as the Retirement Security Rule, established during the Biden administration, remains under scrutiny in the 5th Circuit. The rule aimed to expand ERISA fiduciary status to one-time recommendations, such as annuity sales and rollovers. The DOL's possible actions include completely rescinding the existing rule, which would revert to the 1975 standard, or revising it (they could also continue fighting it in the courts as is, but nobody really expects that).

Source: Psca.org, October 2025

Fiduciary Liability Critical in Russell Investments ERISA Case

A federal judge has allowed complaints against Russell Investments Group LLC, which is accused of causing plan participants to lose over $100 million by placing them in its own target-date funds. However, the judge dismissed complaints against the plan sponsor, Caesars Holdings Inc. This ruling suggests that plan sponsors can reduce their fiduciary liability by delegating investment authority to a 3(38) fiduciary. Marcia Wagner, founder of the Wagner Law Group, emphasizes that as long as plan sponsors have a process to evaluate and select 3(38) fiduciaries reasonably, this delegation can protect them from liability related to investment performance lawsuits.

Source: Plansponsor.com, October 2025

Duke Latest Bedeviled by Forfeiture Reallocation Suit

The lawsuit argues that the plan fiduciaries acted with a conflict of interest, despite the plan document allowing for the choice between using forfeited funds for either offsetting employer contributions or covering administrative expenses. It claims that the Duke defendants failed to implement or adhere to prudent processes for allocating these forfeited funds. The suit states that the fiduciaries consistently prioritized reducing company contributions over the best interests of plan participants, asserting that the funds would have more effectively benefited participants if used to reduce or eliminate administrative expenses instead.

Source: Napa-net.org, October 2025

DOL Greenlights Managed Account-Based Lifetime Income Offering

The DOL recently issued Advisory Opinion 2025-04A, clarifying that a managed account-based lifetime income offering can qualify as a qualified default investment alternative (QDIA). The opinion confirms that a specific lifetime income solution, which includes annuities not designated as investment options within the plan, is eligible to serve as a QDIA. This advisory also offers reassurance for similar lifetime income strategies and may indicate increased DOL support for such offerings in the future.

Source: Morganlewis.com, October 2025

Updated Regulatory Agendas Have Few New Retirement Items

The spring 2025 update of the regulatory agendas for the IRS, DOL, and PBGC includes several new items concerning retirement plans. This article focuses on key highlights, particularly regulatory initiatives connected to the Setting Every Community Up for Retirement Enhancement Act of 2019 and the SECURE 2.0 Act of 2022.

Source: Mercer.com, October 2025

Managed Accounts and Investment Advice: What Fiduciaries Should Know

Recent lawsuits have targeted major recordkeepers like TIAA, Empower, and Fidelity, as well as other service providers, regarding their investment advice and managed account offerings for retirement plan participants. These cases highlight that investment advice qualifies as fiduciary advice, which plan fiduciaries are required to review and monitor, regardless of the delivery method (in-person, phone, or online). Plan sponsors that opt to provide managed account products must be able to explain and demonstrate how these products serve the best interests of participants to avoid potential breaches of their fiduciary responsibilities.

Source: Kutakrock.com, October 2025

Increasing Scrutiny of "ESG-Influenced Investing" by ERISA Plans Has Implications for Stakeholders

In January 2025, the Northern District of Texas ruled that 401k plan fiduciaries violated ERISA by allowing ESG factors to influence their investment decisions, despite meeting ERISA's prudence standard. The court deferred judgment on remedies until September 30, 2025, ultimately issuing the Spence Remedial Ruling, which imposes extensive and burdensome equitable remedies on the fiduciaries and their corporate sponsors, without granting monetary damages. This ruling reflects a broader trend of increasing scrutiny on ESG-influenced decision-making by various stakeholders, including benefit plan sponsors and investment managers. Stakeholders are advised to assess the potential impact of the Spence Remedial Ruling and consider appropriate remedial actions.

Source: Jonesday.com, October 2025

The 2026 Catch-Up Rule Change Is a "Hot Mess" for 401k Plan Sponsors

The author suggests that if there's a retirement plan rule that embodies the phrase "What fresh hell is this?", it's the impending 2026 catch-up contribution change for highly compensated employees. Under SECURE 2.0, high earners will be required to make their catch-up contributions as Roth, rather than pre-tax. This bureaucratic twist is enough to make one roll your eyes and reach for another martini. It's bound to be a chaotic situation, and as always in the 401k landscape, plan sponsors will be left to deal with the fallout.

Source: Jdsupra.com, October 2025

From Stress to Strength: Why Financial Security and Retirement Readiness Matter for Your Workforce

Financial stress significantly affects the U.S. workforce, with 88% of employees experiencing financial anxiety and nearly half of households expected to deplete their retirement savings. This stress adversely impacts employee morale, engagement, and productivity, making financial well-being essential for businesses. HR leaders must focus on providing effective retirement benefits to support employees, manage costs, and enhance competitiveness. The article poses a critical question: Is your organization ready to capitalize on scale to improve retirement security for its workforce?

Source: Hrdive.com, October 2025

The DOL's Focus on Conflicts of Interest (Part 2)

The article is the second part of a series addressing conflict of interest issues related to the self-dealing rule under ERISA and the Internal Revenue Code. It outlines prohibited transactions under these regulations, specifically focusing on "self-dealing" transactions. These occur when broker-dealers, registered investment advisers, and their representatives receive revenue-sharing payments from custodians in exchange for investing in specific funds. The authors aim to clarify the implications of these transactions within the context of ERISA compliance.

Source: Faegredrinker.com, October 2025

401k Plan Document Retention

A 401k plan generates a large volume of documents that must be preserved under ERISA regulations. Developing a simple filing system with three file types can help plan sponsors efficiently manage their documents, ensuring they can easily review, update, maintain, and dispose of records. Having ready access to plan documentation is crucial, as it can lead to quick and cost-free dispute resolutions rather than drawn-out battles. Although civil penalties for not retaining required records are minimal, missing documents can hinder an employer's ability to defend the plan against challenges from the IRS, DOL, or participants. It's essential to understand and comply with retention rules to avoid potential issues. Some of the most common 401k plan records that must be retained to meet ERISA standards are listed here.

Source: Consultrms.com, October 2025

ERISA Litigation: So What, Now What?

Transcribing meeting minutes without context, having vague investment policies, failing to implement a prudent process for managing plan fees, and lacking clear guidelines for handling forfeited funds are all signs of inadequate retirement plan management. These shortcomings have been leveraged in ERISA lawsuits against plan sponsors. Read this article for advice on how to learn from these legal challenges and enhance your practices to become a more effective fiduciary.

Source: Colonialsurety.com, October 2025

Loyalty and Prudence Vs Forfeitures?

Legal battles are intensifying as traditional 401k practices surrounding the management of plan forfeitures face increasing scrutiny in the courts. Another in the series of ERISA "forfeiture lawsuits" that have emerged in 2023 has been filed, challenging the fiduciary duties of loyalty and prudence. Read this article to understand the key issues at stake and how to safeguard yourself.

Source: Colonialsurety.com, October 2025

The Risk of Prohibited Transaction Lawsuits Is Rising: Carol Buckmann Explains What Fiduciaries Should Do

A recent ruling by the U.S. Supreme Court has simplified the process for plaintiffs to file prohibited transaction lawsuits against retirement plan fiduciaries, and the consequences are already being felt. Terms like "fishing expeditions" and "cookie-cutter cases" are being used to describe the anticipated increase in litigation following the Cunningham v. Cornell University decision. Here's what plan fiduciaries need to know.

Source: Cohenbuckmann.com, October 2025

Asset Managers Eye Growth Opportunity in the Mid-Market Retirement Plan Segment

Mid-market defined contribution plans, holding over $1.2 trillion in assets (approximately 15.6% of total 401k assets), are projected to become increasingly competitive, according to The Cerulli Report--U.S. Defined Contribution Distribution 2025. More than 75% of asset managers see these plans as a significant growth opportunity over the next two years. With over 16,200 mid-market 401k plans currently, this number is expected to rise to 17,220 by 2029.

Source: Cerulli.com, October 2025

Plan Sponsors Must Address the Roth Catch-Up Contribution Mandate by January 1, 2026

The IRS has finally released the final regulations regarding the Roth catch-up contribution mandate, a change that was introduced to the Internal Revenue Code three years ago. According to these regulations, sponsors of 401k, 403b, and governmental 457b plans must be ready to implement the new requirement starting on January 1, 2026. This article outlines the details of the new mandate and highlights the decisions that need to be made and actions that should be taken over the next three months.

Source: Bsk.com, October 2025

When Do Retirement Plans Need a Financial Statement Audit?

Renee Mrosowski from Summit Group Retirement Planners provided a thorough summary of plan audit requirement rules. Her clear and methodical approach is impressive and can be very helpful. If you're uncertain about whether your client's plan requires an audit, refer to her step-by-step summary here, which will help clarify the situation.

Source: Belfint.com, October 2025

A Playbook on the IRS's Final Regulations on the Roth Catch-Up Contribution Requirement

Many 401k plan sponsors are currently engaged in conversations with their third-party plan administrators, payroll vendors, and advisors about implementing the new Roth catch-up contribution rules that were released on September 16, 2025. This article serves as a reminder for plan sponsors to also consider their non-qualified deferred compensation plans during these discussions.

Source: Wagnerlawgroup.com, October 2025*

Consider Nonqualified Plans When Implementing New Roth Catch-Up Contribution Rules

Many 401k plan sponsors are currently engaged in conversations with their third-party plan administrators, payroll vendors, and advisors about implementing the new Roth catch-up contribution rules that were released on September 16, 2025. This article serves as a reminder for plan sponsors to also consider their non-qualified deferred compensation plans during these discussions.

Source: Verrill-law.com, October 2025

The Roth Catch-Up Regulations are Final: What You Need to Know

SECURE 2.0's Roth catch-up contribution rule has sparked controversy due to its complexity and administrative burdens for employers and third-party administrators. The IRS and Treasury released final regulations on September 15, 2025, to provide guidance for the rule's implementation, set for January 1, 2026. While the regulations become generally effective on January 1, 2027, the Roth Catch-up Rule must be enforced a year earlier. This article outlines the key provisions of these final regulations and highlights significant changes from the proposed version.

Source: Truckerhuss.com, October 2025

District Court Enjoins 401k Plan From Considering ESG

On October 1, 2025, the US District Court for the Northern District of Texas issued a final judgment in a significant ERISA class action involving the fiduciaries of American Airlines' 401k plan. Earlier in January, the court determined that the fiduciaries breached their duty of loyalty by allowing BlackRock to pursue non-financial ESG objectives in managing certain investment trusts within the 401k plan. The case is expected to draw increased scrutiny to the proxy voting policies and procedures of ERISA plans, particularly regarding how fund managers pursue ESG objectives through proxy voting and shareholder activism.

Source: Steptoe.com, October 2025

2025 Retirement Plan Services Participant Outcomes Survey

Today's retirement plan participants are actively engaged in saving, goal-setting, and utilizing tools, leading to a strong sense of confidence in their progress. To assess how well participants perceive their progress towards retirement goals, eight key outcomes across four financial areas were identified and compared with actual data. The findings explore the differences in financial wellness and retirement readiness across various life stages and generations. Additionally, the paper provides actionable strategies for employers to offer personalized and relevant support, enabling participants to make informed decisions, build confidence, and achieve lasting success in their retirement planning.

Source: Schwabworkplaceservices.com, October 2025

Why 401k Sponsors Must Prioritize Cybersecurity

Retirement plans are increasingly vulnerable to cyberattacks targeting sensitive personal data and substantial retirement assets. As a result, cybersecurity has become a critical fiduciary duty for plan sponsors, rather than just an IT issue. Therefore, plan sponsors must not only secure their own systems but also ensure that all vendors involved, including recordkeepers and advisors, implement strong cybersecurity measures. In a recent interview, Robert Massa from Prime Capital Financial highlighted common mistakes made by plan sponsors, emphasizing the need for greater attention to fiduciary responsibilities and cybersecurity practices.

Source: Primefinancial.com, October 2025

401k 2.0--Retirement Income: Building the Next-Gen Retirement Plan

Retirement plans, particularly 401ks, are evolving from mere savings tools into vehicles for generating retirement income. Employers face a crucial transition in addressing the need for in-plan retirement income solutions. To support participants' long-term financial security, it's essential for plan sponsors to consider design changes, focusing on incorporating retirement income options into these plans. Three key insights reviewed here highlight the necessity for these adjustments to meet the shifting needs of retirement planning.

Source: Principal.com, October 2025

Judge Faults American Airlines for ESG "Influence" on 401k Plan

A federal judge has limited the role of environmental, social, and governance factors in American Airlines' 401k plan following a ruling in the case Spence v. American Airlines Inc. in the Northern District of Texas. Judge Reed O'Connor found that American Airlines engaged in fiduciary misconduct by allowing BlackRock's ESG considerations to affect the retirement plan's core index portfolios, breaching its duty of loyalty under ERISA. However, the judge determined that American Airlines did not breach its duty of prudence, as it acted in line with industry practices. Additionally, the plaintiffs could not prove monetary losses to the plan, so they were not awarded damages.

Source: Planadviser.com, October 2025

New York to Launch State Retirement Savings Program This Fall

Starting this fall, certain New York employers that do not offer a retirement benefit will need to enroll in the state's retirement savings program, as outlined by a government fact sheet. The New York State Secure Choice Savings Program is designed for private sector employees without access to a workplace retirement plan. Established in the 2018-19 state budget, the program allows payroll deductions to be deposited into Roth individual retirement accounts for employees of participating organizations.

Source: Planadviser.com, October 2025

Profit Sharing Allocations: Who Gets What and Why It Matters

The article explores the concept of profit sharing in 401k plans, highlighting that while employees may fantasize about receiving extra retirement contributions from their employers, the real complexity lies in how these contributions are distributed. It examines various allocation methods for profit sharing, detailing the advantages and disadvantages of each.

Source: Newfront.com, October 2025

2026 Will Test Plan Sponsors: Here Is What They Need to Consider

In 2025, plan sponsors are navigating a rapidly changing landscape due to several key developments. An executive order from the President has paved the way for private market investments in 401k plans, while the rise of AI-driven phishing attacks poses new security threats to retirement accounts. The DOL has outlined its regulatory priorities, focusing on updating the SECURE 2.0 Act's reporting requirements, providing guidance on pooled employer plans, and reevaluating previous advisories on pension risk transfers. Additionally, the appointment of Daniel Aronowitz as head of the EBSA is anticipated to bring significant changes for plan sponsors. These factors highlight the importance of being proactive and well-prepared to manage the evolving challenges in the retirement plan sector.

Source: Napa-net.org, October 2025

401k Compliance: Why More Businesses are Turning to 3(16) Fiduciary Services

Providing retirement benefits, like a 401k plan, is crucial for small businesses to remain competitive and enhance profitability. However, managing such plans can be complex due to responsibilities like contributions, loan requests, and compliance. To alleviate these burdens, many business owners are opting for 3(16) fiduciary services, which specialize in daily administration and compliance. This article discusses what 3(16) services entail, the increasing compliance challenges, and key considerations for business owners when selecting a plan provider to streamline oversight.

Source: Myubiquity.com, October 2025

The Evolution of ERISA Forfeiture Cases

Plan sponsors are seeing a favorable trend in court rulings regarding motions to dismiss in forfeiture lawsuits, with 75% of such motions granted in favor of sponsors (18 out of 24 cases). This has led to an increasing number of appeals, with eight currently pending across four US Courts of Appeals. Despite these rulings, the plaintiffs' bar remains active, having filed six new forfeiture lawsuits in September, bringing the total to 75 since September 2023. The table here lists the 24 motion to dismiss rulings by their respective US Court of Appeals.

Source: Mayerbrown.com, October 2025

Forfeiture Claim Dismissed, Excessive Fee Claim Survives in Novo Nordisk 401k Suit

A federal district court judge in New Jersey granted a partial motion to dismiss in a lawsuit involving Novo Nordisk's 401k plan, which alleged violations of ERISA. The judge dismissed claims that Novo Nordisk improperly utilized forfeited funds to cover future employer contributions and that the company included a poorly performing target date fund in the plan. Following this partial dismissal, the only remaining allegation from employees is that the company imposed excessive fees on participants in the management of its $2.3 billion 401k plan.

Source: Hallbenefitslaw.com, October 2025

No Monetary Harm, No Foul? Not Quite, but American Airlines Not Required to Pay Any Monetary Damages in ERISA ESG Breach of Loyalty Case

On September 30, 2025, Judge Reed O'Connor issued a final judgment in the case of Spence v. American Airlines, Inc., where the court addressed claims that American Airlines and its employee benefits committee violated ERISA fiduciary duties by allowing ESG influences to affect the management of retirement plans. Judge O'Connor ruled that American Airlines was not liable for monetary damages, as the plaintiff did not prove actual financial losses from the breach of duty. However, the court provided significant equitable relief, including a permanent injunction against American Airlines.

Source: Erisapracticecenter.com, October 2025

Best practices: Mandatory Roth Catch-Up Contributions

On September 15, the IRS issued final regulations under SECURE 2.0 concerning catch-up contributions. The guidance highlights the importance of coordination among stakeholders, flexible communication strategies, and active monitoring of contribution limits. It stresses the need for effective cooperation among service providers to manage variability in plan design. The article outlines industry best practices aimed at enhancing consistency, compliance, and operational efficiency among payroll providers, plan sponsors, recordkeepers, and third-party administrators.

Source: Captrust.com, October 2025

When Does Your ERISA Plan Need an Audit?

The Form 5500 is an annual information return required for most employee benefit plans under ERISA, with penalties for failing to file imposed by both the IRS and DOL. While employers with benefit plans generally understand the necessity of filing Form 5500, the specific schedules and attachments required can differ based on the plan's size and funding.

Source: Brickergraydon.com, October 2025

Auditing Merged Assets From Unaudited Retirement Plans

When large retirement plans merge assets from smaller plans during stock acquisitions or mergers, auditors must evaluate the potential operational errors from the smaller plans that could affect the financial statements of the larger plan. This assessment is especially crucial if the merged-in assets haven't been previously audited, as they may introduce "tainted" assets. Conversely, asset acquisitions and rollovers from plans that are terminated before the merger are less likely to pose this risk. The audit implications vary depending on whether the merged-in assets have been audited previously and whether the target company's plan is terminated before the merger.

Source: Belfint.com, October 2025

The Supreme Court Prohibits ERISA

In the case of Cunningham vs. Cornell University, the U.S. Supreme Court clarified the pleading requirements for prohibited transaction claims under ERISA section 406(a)(1)(C). The Court ruled that a plaintiff only needs to allege facts showing that a fiduciary caused an employee benefit plan to receive services from a party in interest, without having to demonstrate the inapplicability of ERISA section 408(b)(2)(A). The author argues that the court's ruling is fundamentally flawed because the definition of "party in interest" encompasses all plan fiduciaries. This interpretation allows for lawsuits concerning all transactions where a plan receives services, including those that ERISA mandates fiduciaries to provide. Consequently, the Court's reading creates a contradiction, as it simultaneously requires fiduciaries to perform certain actions while prohibiting them from engaging in those same actions.

Source: Ssrn.com, October 2025*

What to Know When Changing Providers

When moving from one retirement plan service provider to another, there are crucial considerations for plan sponsors and new service providers. An increasing number of plans are switching from their existing third-party administrators or bundled providers, according to PenChecks. In a recent webinar, Brian Furgala, Senior Director of Retirement Services Strategy at PenChecks, emphasized the importance of addressing various factors to ensure a smooth transition. This process can help protect both the plan sponsor and the new provider while facilitating effective plan administration for participants.

Source: Psca.org, October 2025

Schlichter Looking for $17.5 Million Payday in Pentegra Suit

Schlichter Bogard LLC is seeking what could be the largest attorney fee award following a significant jury verdict in an ERISA class action case, which totaled $38,760,232 for excessive administrative fees. Subsequently, on May 1, 2025, the parties settled the case for $48,500,000, surpassing the jury verdict amount. Schlichter argues that, in accordance with the common fund doctrine, the Court should grant Class Counsel attorney fees amounting to $16,513,179, which represents one-third of the common fund or "Gross Settlement Balance." Additionally, they are requesting reimbursement for reasonable litigation expenses totaling $1,044,209.46, the majority of which pertains to the costs incurred for essential experts that contributed to the jury's verdict.

Source: Napa-net.org, October 2025

Lessons in Arrogance: What We Can Learn From the Mistakes of Overconfident Plan Providers

The author emphasizes the distinction between confidence and arrogance in business. While confidence is essential, arrogance can be detrimental. It can lead to a lack of awareness of risks, create isolation from peers, and erode the foundational elements of trust and relationships. When professionals become arrogant, they tend to stop listening, which hinders their growth and development. The author identifies common mistakes made by overly arrogant providers, highlighting the importance of maintaining humility and openness in the business world.

Source: Jdsupra.com, October 2025

What Employers Need to Know About Trump Accounts

The One Big Beautiful Bill Act, signed into law on July 4, 2025, establishes "Trump Accounts," a new tax-preferred savings option for children aimed at promoting early investing. The law provides an initial $1,000 government contribution to these accounts for newborns from 2025 to 2028. Individuals, including parents and grandparents, can contribute up to $5,000 annually, and employers may also contribute to support employee recruitment and retention. The article outlines key considerations for employers regarding contributions, account eligibility, plan document requirements, investment options, and nondiscrimination rules, while noting that further guidance from the IRS will be needed on some issues.

Source: Ifebp.org, October 2025

Required Roth Catch-Up Goes Live in 2026

The IRS has released final regulations related to a provision in the SECURE 2.0 Act of 2022. These regulations state that participants in 401k or 403b plans, who have FICA wages exceeding a specific dollar amount from the sponsoring employer in the previous year, can only make catch-up contributions as designated Roth contributions. The article discusses key aspects of these final regulations and their implications.

Source: Erisalitigation.com, October 2025

IRS Elects to Contribute Complex Final Regulations on Super and Roth Catch-ups

On September 16, 2025, the IRS released final regulations regarding two new catch-up contribution provisions from the SECURE 2.0 Act of 2022. The provisions allow participants aged 60 to 63 to make increased catch-up contributions and require higher-income participants' catch-up contributions to be made as Roth contributions. These final regulations confirm that plan sponsors must implement the Roth catch-up requirement starting with the 2026 taxable year. While the final regulations largely follow the proposed regulations from January, they include clarifications and offer plan sponsors more flexibility in their administration.

Source: Eversheds-Sutherland.com, October 2025

Forgotten 401k Assets Hit $2.1 Trillion

According to a recent analysis by Capitalize, the number of lost 401k accounts has surged by 30%, now totaling $2.1 trillion in assets. The 2023 report, conducted in partnership with the Center for Retirement Research, reveals that as of July 2025, there are 31.9 million misplaced accounts. The report highlights a steady increase in forgotten 401k accounts, with 3.5 million left behind in 2023, 4 million in 2024, and an expected 4.2 million in 2025.

Source: 401kspecialistmag.com, October 2025

$1K Boost Projected for 2026 401k Employee Contribution Limit

According to a Milliman forecast, the IRS is expected to increase the maximum 401k contribution limit for employees by $1,000 in 2026, raising it from $23,500 to $24,500. Moreover, the Milliman forecast stated, "If the change in CPI in September is 0.7% or greater, the compensation limit for 2026 will be set at $365,000 instead of $360,000, and the maximum annual contribution for defined contribution plans will rise to $73,000 instead of $72,000."

Source: 401kspecialistmag.com, October 2025

What Might Top EBSA's Priority List Under Aronowitz?

Daniel Aronowitz, recently confirmed as the head of the Employee Benefits Security Administration, is expected to prioritize streamlining retirement plan oversight and reducing litigation in his new role. During his confirmation hearings, he also expressed a commitment to ending the "war" on employee stock ownership plans. However, an executive order from President Trump on August 7, which calls for a reevaluation of guidance on alternative investments in defined contribution plans, may quickly become a top priority for Aronowitz.

Source: Plansponsor.com, October 2025

This 401k Change Could Impact How You Make Catch-Up Contributions

Beginning next year, older workers making catch-up contributions to retirement plans such as 401ks may need to do so on a Roth basis. Specifically, starting in 2026, workers aged 50 and older who earn over $145,000 will be required to make 401k catch-up contributions on a Roth basis, meaning they will pay taxes on those contributions upfront. This income threshold is indexed to inflation. Not all retirement plans may offer a Roth option, potentially limiting access to catch-up contributions for some high earners. However, Roth contributions allow for tax-free withdrawals in retirement, which may benefit those anticipating higher tax rates later on.

Source: Investopedia.com, October 2025

Looking for earlier information? Go to our Archive.

401khelpcenter.com, LLC is not the author of the material referenced in this digest unless specifically noted. The material referenced was created, published, maintained, or otherwise posted by institutions or organizations independent of 401khelpcenter.com, LLC. 401khelpcenter.com, LLC does not endorse, approve, certify, or control this material and does not guarantee or assume responsibility for the accuracy, completeness, efficacy, or timeliness of the material. Use of any information obtained from this material is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.

About | Glossary | Privacy Policy | Terms of Use | Contact Us

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.