Article Summaries

Compliance and Regulatory

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

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

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

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

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

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

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Fiduciary and Plan Governance

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

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

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Insight: Studies, Research, Analysis, or Papers

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

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

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

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

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Items of Special Interest to Advisers or Other Service Providers

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

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

Court and Legal

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

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Marketplace News

Transamerica Opens Stable Value Option to All Recordkeepers

Major Collaboration on Lifetime Income Solutions Announced

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.