Plan sponsors must provide essential communications and disclosures to plan participants to ensure transparency and protect their interests. Watkins Ross has compiled a list of key required notices and disclosures for defined contribution plans, along with distribution deadlines to support plan sponsors in their responsibilities.
Employers have traditionally used non-vested employer contributions, or forfeited assets, to offset future contributions to their 401k plans. However, this practice has come under scrutiny, as some plaintiffs argue that it violates ERISA by suggesting those assets should instead offset plan participant expenses. While district courts have generally upheld the practice of using forfeited assets to reduce future employer contributions, the issue is currently being appealed for the first time before the Ninth Circuit.
As interest in digital assets and cryptocurrencies grows among individual investors, retirement plan sponsors are exploring the potential inclusion of crypto in 401k investment options. The DOL has recently released guidance regarding cryptocurrency investments in retirement plans. Advisors are encouraged to educate plan sponsors on the associated risks and regulatory changes. When clients inquire about crypto investments, advisors should engage them in discussions about the specific risks of cryptocurrencies, considering the investment options and the needs of participants.
President Donald Trump signed an executive order on August 7 that enables U.S. citizens to invest their 401k retirement savings in alternative assets like cryptocurrency, private equity, and real estate. The executive order directs the DOL and other agencies to review and clarify guidelines on these investments within 180 days. It also tasks the DOL with evaluating fiduciary responsibilities related to alternative asset investments in ERISA-governed 401k and other defined-contribution plans, prompting caution from employers regarding the implications of such changes.
A federal judge in New Jersey dismissed a class action lawsuit brought against Novo Nordisk Inc. regarding alleged mismanagement of a $1.2 billion employee retirement plan under ERISA. The lawsuit, filed by employees John Fumich, Laura Mischley, Raphael Hinton, Ronnie McLean, and Thomas Chaffin, claimed that the company failed to adequately review investment options in its 401k Savings Plan since September 13, 2018. The case was heard in the U.S. District Court for the District of New Jersey.
Jack Henry & Associates Inc. and its 401k retirement committee have reached a $1.6 million settlement in a class action lawsuit alleging fiduciary duty breaches under the Employee Retirement Income Security Act. The lawsuit was initiated by plan participants Guy LaCrosse and Jojemar Mendoza, who claimed that the company allowed excessive recordkeeping and administrative fees in its 401k Retirement Savings Plan and improperly retained the Prudential Guaranteed Income Fund for participants. From 2017 to 2022, the retirement plan reportedly incurred over $2 million in recordkeeping and administrative fees, averaging $78 per participant.
On July 29, 2025, the DOL released new interpretive guidance on pooled employer plans aimed primarily at assisting small employers in finding high-quality and low-cost options. The guidance includes general questions to gather information for Congress about the PEP industry and to aid the DOL in creating regulatory safe harbors that promote the growth of these plans.
A proposed settlement has emerged two years after a lawsuit was filed regarding excessive fees in the Jack Henry and Associates, Inc. 401k Retirement Savings Plan. The case, initiated in October 2023 by participants Guy M. Lacrosse and Jojemar Mendoza, alleged that fiduciaries allowed the plan to incur excessive recordkeeping and administrative fees from Prudential, claiming these fees were significantly higher than reasonable rates for similar plans. Between 2017 and 2022, the Jack Henry Plan reportedly paid over $2 million in recordkeeping and administrative fees, averaging $78 per participant. The settlement includes cash compensation and a commitment to conduct a Request for Proposal for recordkeeping services.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
