Article Summaries

Fiduciary and Plan Governance

Alternative Investments in 401k Plans: Executive Order Implications and Key Fiduciary Considerations

Financial professionals are increasingly supporting the incorporation of alternative investments into modern portfolios, but there has been uncertainty surrounding their integration into 401k and other defined contribution plans. Recently, a White House executive action has indicated a shift towards a more favorable regulatory environment for Investment Solutions that include alternative investments. This article examines the evolving regulatory landscape and outlines key considerations for Plan fiduciaries seeking to offer their participants access to alternative investments through these Solutions.

Source: Wagnerlawgroup.com

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Insight: Studies, Research, Analysis, or Papers

AI Adoption Redefines Retirement Experience Rankings as Fidelity and TIAA Stay on Top

According to Corporate Insight's latest benchmark report, firms that are investing in AI technology are experiencing substantial improvements in their digital services. Kara Sostar, a retirement research manager at Corporate Insight, noted that early adopters of AI are seeing tangible benefits, particularly in areas like search, virtual assistance, and personalized content delivery. This year, companies that strategically invested in these digital features have gained a competitive edge. Fidelity and TIAA were highlighted as leading examples, maintaining their top positions from the previous year's study.

Source: Corporateinsight.com

Participants' Credit Card Debt Reduces Retirement Funding

A study by J.P. Morgan Asset Management reveals that nearly half of retirement plan participants are burdened by credit card debt, leading many to take loans against their future savings. The "Retirement by the Numbers" report analyzed data from 16,000 defined contribution plans and over 12 million participants, highlighting the correlation between high credit card balances and lower contribution rates and account balances. This debt impacts retirement readiness, decreasing it by up to 40% for older participants.

Source: 401kspecialistmag.com

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Items of Special Interest to Advisers or Other Service Providers

CAPTRUST's 2026 Retirement Plan Industry Predictions

As we approach 2026, plan sponsors must navigate a changing environment characterized by new regulations, fiduciary risks, evolving plan designs, and shifting participant expectations. This period reflects ongoing change, intensified by urgency. The discussion here highlights key trends expected to influence retirement plans in the coming year.

Source: Captrust.com

Alternatives Gain Ground Among Plan Advisors After Federal Policy Shift

New research from Escalent's Cogent Syndicated report, titled "2025 Retirement Plan Advisor Trends," reveals that one in four defined contribution plan advisors are likely to recommend alternative investments for plan lineups, while one in ten are currently doing so. This shift towards alternative investments follows the DOL's decision in August 2025 to reverse its prior position on their suitability in 401k and other workplace retirement plans. The study aims to provide insights for retirement plan providers and investment managers regarding the views and preferences of financial advisors in the employer-sponsored retirement plan space.

Source: 401kspecialistmag.com

403b Plans

Employee Participation in 403b Plans Jumps for 2024

Research from the Plan Sponsor Council of America indicates a significant increase in employee participation and the adoption of automatic features in 403b plans for 2024. The survey found that the percentage of eligible employees with an account balance rose by five points to 85.1%. Additionally, contributions from employees increased to 78.3%, up from 73.7% the previous year. Employees continued to defer an average of 6.7% of their gross annual pay, while employer contributions slightly increased to an average of 5.4%, resulting in a combined savings rate of 12.1%.

Source: 401kspecialistmag.com

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Court and Legal

Government Charts New Course in ERISA Retirement Space

On December 9, 2025, the U.S. Solicitor General and the DOL submitted an amicus brief in the case of Parker-Hannifin Corporation, et al. v. Johnson, et al., urging the Supreme Court to review Parker-Hannifin's petition for certiorari. The petition challenges the Sixth Circuit's decision, which stated that a meaningful benchmark is not necessary to plead a fiduciary breach claim under ERISA concerning underperforming, high-fee investments in a 401k plan. The government's brief contends that the Sixth Circuit's ruling is incorrect and highlights two main errors in the decision.

Source: Millerchevalier.com

Federal Judge Dismisses 401k Lawsuit Against AutoZone

A federal court judge in Tennessee ruled in favor of AutoZone and its investment committee in an ERISA case regarding the company's 401k plan. The case, Iannone et al. v. AutoZone Inc., concluded that plan participants did not prove that AutoZone mismanaged its investment options. The judge found that AutoZone's investment committee met quarterly, regularly monitored funds, and made significant changes to lower fees and update default investment options. Consequently, the judge determined that AutoZone did not breach its fiduciary duties under ERISA.

Source: Hallbenefitslaw.com

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Legislative or Washington DC

US Executive Order Targets Proxy Advisors and ESG-Related Voting Practices

On December 11, President Trump issued an executive order titled "Protecting American Investors from Foreign-Owned and Politically-Motivated Proxy Advisors." The order expresses concern that major proxy advisory firms have excessive influence over corporate governance, shareholder proposals, and investment practices, which they allegedly use to promote politically driven agendas regarding diversity, equity, and inclusion, as well as environmental, social, and governance issues. The executive order seeks to enhance federal oversight of the proxy advisor industry.

Source: Morganlewis.com

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Cyber and Plan Security

How to Talk to Participants About Cybersecurity

As we approach 2026, cybersecurity in retirement planning is emphasized as a shared responsibility among plan sponsors, advisers, recordkeepers, and participants. Sastry Durvasula from TIAA stresses that preventing fraud is a collective effort, while Luke Delorme from Tableaux Wealth highlights the individual responsibility in safeguarding assets. To better inform participants, Durvasula insists on the importance of communicating the evolving nature of digital scams, which now include not just common phishing emails but also sophisticated AI-generated deepfake scams that can deceive even savvy individuals.

Source: Plansponsor.com

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State-Based Private-Sector Retirement Programs

How Do State Auto-IRAs Affect Adoption of Employer Plans?

According to this paper, State auto-IRA initiatives have expanded opportunities for many additional workers to save through payroll deductions in two ways: by participating in the newly established auto-IRAs and by increasing the adoption of employer-sponsored retirement plans. The paper is structured as follows: The first section offers an overview of state auto-IRA programs. The second section outlines the data and methodology employed to assess the impact of these programs on the proportion of employers providing their own retirement plans. The third section presents the findings of the analysis. Finally, the concluding section highlights that state auto-IRAs have encouraged a greater number of employers to establish their own retirement offerings.

Source: Bc.edu

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Compliance and Regulatory

Do You Have an RFP Template for a 401k | 403b Plan Audit?

In educational seminars, attendees often inquire about a template for a retirement plan audit Request for Proposal. After emphasizing the importance of selecting a qualified plan auditor and outlining essential items and criteria for evaluation, the author provides an RFP outline that highlights key components of an effective retirement plan audit. Additionally, a customizable RFP template is provided to accommodate the specific requirements of each plan.

Source: Belfint.com

2025 Form 5500 Informational Copies Released by DOL, IRS

The DOL announced the release of informational copies of the 2025 Form 5500 and related forms online, in collaboration with the IRS and the Pension Benefit Guaranty Corporation. This announcement occurred approximately 20 days later than the previous year. Federal regulations require pension and welfare benefit plans to file annual reports detailing their financial condition, investments, and operations using the Form 5500 series.

Source: 401kspecialistmag.com

DOL Expects to Release Guidance on Paper Statements, E-Disclosures

The DOL is set to issue guidance that may change how retirement plan participants receive benefit statements. Following the SECURE 2.0 Act of 2022, the proposed regulations will mandate that defined contribution plans provide at least one paper benefit statement annually, unless participants opt out. Additionally, defined benefit plans will need to provide paper statements at least once every three years. While electronic delivery will remain the primary method of communication, this move restores a guaranteed role for paper statements.

Source: Plansponsor.com

Required Amendments List for Qualified Plans and 403b Plans

On December 4, 2025, the U.S. Treasury Department and IRS released Notice 2025-60, which includes the Required Amendments List for 2025 concerning qualified defined benefit and defined contribution plans, as well as 403b plans. This RA List details the amendments that must be made in response to legislative and regulatory changes applicable to both individually designed and pre-approved plans. Each year's RA List consists of updates for which the IRS has issued guidance or does not anticipate needing guidance, and it outlines compliance requirements for the calendar year in which it is published.

Source: Milliman.com

The Silent Killer of Retirement Plans: Compensation Definitions

In the retirement plan industry, there is a tendency to focus on high-profile issues like lawsuits, excessive fee claims, and fiduciary scandals. However, the true danger to most 401k plans lies in the often-overlooked aspect of compensation definition. This subtle yet significant factor can pose greater risks than fees, investment choices, or other flashy concerns. While it may not be as dramatic as a blockbuster movie, understanding this element is crucial for maintaining a healthy retirement plan and avoiding disaster.

Source: Jdsupra.com

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Marketplace News

Fred Reish Joins Prime Capital Retirement

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.