Summaries

Fiduciary and Plan Governance

The 401k Committee

While ERISA does not mandate the establishment of a committee for company-sponsored retirement plans, having a well-trained and organized committee can enhance prudent decision-making related to plan administration, investment selection, and oversight. Additionally, an effective committee can substantially mitigate the burdens and liabilities that would otherwise rest solely on the shoulders of the plan sponsor.

Source: Colonialsurety.com

Private Equity in DC Plans: Prioritizing Expertise Over Exuberance

Private market assets are increasingly being integrated into defined contribution plans due to changing regulatory guidelines. These assets, including private equity, private debt, real estate, and infrastructure, offer attractive potential returns but also present challenges such as illiquidity, high fees, and complex management selection. The risks include possible underperformance and increased litigation. This paper examines recent developments that tackle these investment and operational issues, enhancing the feasibility of private markets, particularly private equity, for DC plan sponsors. It covers the entire investment process, including asset allocation, portfolio construction, implementation, and manager selection.

Source: Nepc.com

Alternative Assets for DC Plans

Under an executive order issued by President Donald Trump in August, participants in defined contribution plans could gain increased access to alternative investments. The order, titled "Democratizing Access to Alternative Assets for 401k Investors," instructs the Secretary of Labor to review the Department of Labor's guidance regarding the inclusion of alternative assets in asset allocation funds for participants. This article outlines various types of alternative investments referenced in the executive order.

Source: Ifebp.org

What Happens to the 401k? Defined Contribution Decisions During M&A

Mindy Zatto and David Runsick from Strategic Benefits Advisors emphasize the importance of addressing 401k retirement plans during corporate acquisitions. In the flurry of negotiating and managing communications, the 401k plan often gets overlooked, despite its critical role as an employee benefit with fiduciary obligations and compliance responsibilities. Both buyers and sellers must consider the implications of their defined contribution plans, as decisions made during the acquisition can significantly impact the transaction's success and the overall employee experience.

Source: 401kspecialistmag.com

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Insight: Studies, Research, Analysis, or Papers

Debunking Four Myths Distorting Perceptions of Private Markets in Defined Contribution Plans

The new white paper from Cerulli and DCALTA, titled "Unlocking the Potential of Private Investments in Defined Contribution Plans," addresses prevalent misconceptions about integrating private markets into defined contribution plans. As asset managers, trustees, and recordkeepers explore incorporating private market allocations in target-date solutions and managed accounts, the research highlights four key misconceptions hindering progress. The concept of including private market options in participant investment strategies is relatively recent for many industry stakeholders, leading to concerns and misunderstandings that the paper aims to clarify.

Source: Cerulli.com

U.S. Retirement Assets Back to Setting Record Highs in Q2: ICI

Total U.S. retirement assets reached a record high of $45.8 trillion as of June 30, 2025, representing a 6% increase from the end of Q1. This growth is attributed to strong stock market performance, with the S&P 500 rising nearly 11% and the Nasdaq Composite increasing almost 18% during Q2, alongside disciplined saving behavior and continued investments. Retirement assets now account for 34% of all household financial assets, despite earlier market volatility and tariff concerns.

Source: 401kspecialistmag.com

U.S. Retirement Assets Climb to Nearly $46 Trillion in Second Quarter

The Investment Company Institute announced that U.S. retirement assets reached a record high of $45.8 trillion by June 30, 2025, reflecting a 6% increase since March. This total represents 34% of all household financial assets in the country. Defined contribution plan assets amounted to $13 trillion, rising 6.4% from the previous quarter. Additionally, private-sector defined benefit plans had $3 trillion in assets, while annuity reserves outside retirement accounts were $2.5 trillion.

Source: Napa-net.org

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Items of Special Interest to Advisers or Other Service Providers

Fuel Enrollment, Deferral Rates and Revenue by Going Digital

Jim Young from Broadridge highlights the benefits of automating retirement communications for plan participants and sponsors. In a dynamic regulatory and market environment, automation enhances communication agility and compliance. It also improves personalization, deliverability, and convenience, leading to increased participation and contributions. Overall, digital solutions facilitate better employee engagement and enable plan advisors to deliver significant value to both sponsors and employees.

Source: 401kspecialistmag.com

Ten Traits of Top-Tier Recordkeepers

The recordkeeper of your retirement plan is essential in enhancing the participant experience, ensuring regulatory compliance, and offering fiduciary oversight. The most effective providers deliver a wide range of services and typically exhibit these 10 key traits.

Source: Francisway.com

Court and Legal

Judge (Mostly) Dismisses 401k Fiduciary Forfeiture Reallocation Suit

Ariel Armenta filed a lawsuit against WillScot Mobile Mini regarding the 401k Plan, alleging that the company breached its fiduciary duties under ERISA by improperly allocating plan forfeitures and engaging in self-dealing. Judge Liburdi dismissed claims that forfeitures should solely benefit participants and cover administrative expenses, stating that the plan document allowed the actions taken and that the order of reallocation was not specified in the Plan terms.

Source: Napa-net.org

Law Firm Husch Blackwell Accused of 401k Self-Dealing

An attorney and former employee of Husch Blackwell LLP has filed a federal lawsuit against the law firm and its executive board members, alleging violations of fiduciary duties under ERISA. The complaint claims that the firm engaged in self-dealing and other breaches by failing to timely remit withheld employee contributions to the retirement plan, despite deducting the amounts from employee paychecks. The proposed class includes all plan participants and beneficiaries employed by the firm since September 16, 2019.

Source: Planadviser.com

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Legislative or Washington DC

EBSA Nominee Aronowitz Confirmed by Senate

The U.S. Senate approved Daniel Aronowitz's nomination as Assistant Secretary of Labor to oversee the Employee Benefits Security Administration after a seven-month wait. The Senate voted 51-47 to confirm him, alongside 47 other Trump administration nominees, using a modified voting procedure known as the "nuclear option."

Source: Napa-net.org

Three Retirement Bills Advance to Full House of Representatives

During a markup session on Wednesday, the House Committee on Education and the Workforce moved forward with three bills related to retirement. Two of these bills, which were introduced in April, focus on the audit procedures of the Department of Labor and generated significant debate during a committee hearing on July 22. The third bill addresses valuations of employee stock ownership plans and has garnered bipartisan support in both chambers of Congress. All three bills are now set to proceed to the full House of Representatives.

Source: Planadviser.com

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Compliance and Regulatory

Qualified Domestic Relations Orders Under ERISA: A Practical Guide

Each year, divorced individuals look forward to receiving the retirement benefits designated to them in their divorce decree, and most of the time, they do. However, there are instances where a valid Qualified Domestic Relations Order is not obtained, leading to ongoing disputes and the potential loss of anticipated benefit payments. This guide offers practical advice on ensuring that ERISA-covered retirement benefits are divided through a valid QDRO, alleviating concerns about receiving the benefits you expected post-divorce. Although these tips are primarily targeted at individuals navigating a divorce, they will also be beneficial for attorneys.

Source: Dol.gov

IRS Issues Final Regulations on Catch-Up Rule Changes

On September 16, 2025, the Treasury Department and the IRS issued final regulations concerning catch-up contributions as dictated by the SECURE 2.0 Act of 2022 for 401k, 403b, and governmental 457b plans. These final regulations provide essential guidance to address significant questions raised by employers and plan administrators following the proposed regulations issued in January. The article is structured into three parts: Parts I and II summarize the resolutions of key questions regarding changes to catch-up contributions, while Part III discusses the applicability dates of these regulations.

Source: Groom.com

Final Catch-Up Contribution Rule Provides Some Relief

The final rule does not extend the effective date for the Roth catch-up contribution requirement for plans, except for multiemployer plans. For other plans, participants earning over $145,000 from their 2026 employer in 2025 must make all catch-up contributions in 2026 as Roth contributions instead of pre-tax contributions. Until the final rule is enacted, plans must comply with SECURE 2.0 using a reasonable, good-faith interpretation, and following the final rule will be considered such an interpretation.

Source: Segalco.com

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Marketplace News

Human Interest Unveils Automated 401k Audit Solution

This eNewsletter is a digest of information published by a variety of web-based sources on 401k and related issues and is published as a service to our users. 401khelpcenter.com, LLC is not the author of the material unless specifically noted.