Preparing for 2026 ERISA Plan Compliance
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In This Issue - Headlines Compliance and Regulatory
Fiduciary and Plan Governance Insight: Studies, Research, Analysis, or Papers
Auto 401k Plan Features Court and Legal
Legislative or Washington DC Marketplace News Article Summaries Compliance and Regulatory Preparing for 2026 ERISA Plan Compliance The compliance calendar serves as a tool for plan fiduciaries to track important due dates for retirement plans, especially considering annual updates and changes in regulations. In 2025, new regulatory requirements emerged, including updates to contribution limits, covered compensation tables, and final regulations for Roth catch-up contributions. This calendar provided is designed to alert fiduciaries of significant regulatory dates for 2026 for plans governed by ERISA. However, it does not cover all compliance obligations or due dates and assumes the plan operates on a calendar year basis. Source: Planadviser.com How to Prepare for 401k Compliance Testing: Five Key Areas As the new year begins, business owners should focus on organizing their retirement plan reporting. It's time to inform your third-party administrator about any business changes from the previous year and provide complete employee census data for 401k compliance testing. While the information requests may seem repetitive, it's crucial to answer them thoroughly. Incomplete or incorrect data can impact test results, potentially leading to complicated corrections and penalties. Ensure your retirement plan is secure and compliant by providing your TPA with the necessary information to avoid issues during an audit. Source: Watkinsross.com 72(t), SEPP Distributions From a 401k Answers this question. "I want to take 72(t) payments from my 401k plan, but I have received conflicting information as to whether this can be done from a retirement account that is not an IRA. What is the right answer?" Source: Iradictionary.com This article outlines the requirements that plan sponsors need to adhere to to employ the safe harbor correction method for automatic enrollment and automatic escalation errors. It provides actionable steps that plan sponsors can take immediately to implement the safe harbor, while also reminding them that the capacity for self-correcting errors relies on having established compliance practices and procedures within the plan. Source: Verrill-law.com Roth Catch-Up Contributions: A Practical Deep Dive Starting with plan years that begin on January 1, 2026, SECURE 2.0 introduces significant changes to the administration of catch-up contributions for specific higher-paid participants. Notably, plans are now required to implement mandatory Roth treatment for catch-up contributions made by HPPs. These new regulations present additional compliance, payroll, and communication challenges that plan sponsors should proactively address before the effective date. This article outlines the final rules and emphasizes key practical considerations for plan sponsors and administrators. Source: Eisneramper.com »» Click here for more Compliance and Regulatory Material Fiduciary and Plan Governance When a Recordkeeper Switch Becomes a Fiduciary Freefall If you're a plan sponsor reading this, you might be thinking, "I’ll never find myself in that situation." However, the individual in question could very well be you. The case of Rick Case Enterprises -- a Florida automotive group that reportedly lost around 9% of its 401k assets during a recordkeeper conversion -- serves as a classic warning about the consequences of lax oversight. Here’s how this cautionary tale unfolded. Source: Jdsupra.com »» Click here for more Fiduciary and Plan Governance Material Insight: Studies, Research, Analysis, or Papers Bringing Alternatives to DC Plan Participants Tops 2026 Regulatory Priorities During the first year of Trump's second term, the administration focused on key appointments and a government shutdown. Looking ahead, experts expect a busy year for the SEC and the DOL, particularly in expanding access to private markets. Trump signed an executive order to "democratize access to alternative assets" for 401k plans, including private equity and digital assets. The DOL is tasked with creating guidance by February 3, 2025, to amend current policies and address litigation concerns under ERISA. Despite the legality of including alternative assets in retirement plans, plan sponsors remain cautious due to fears of litigation and issues regarding fees, liquidity, and transparency. Source: Wagnerlawgroup.com We've Reached the Tipping Point for 401k Retirement Plans Beau Adams, president of American Trust Retirement, anticipates a significant shift in financial advising as retirees transition from saving to withdrawing funds. With over 4 million people in the U.S. turning 65 this year -- more than 11,000 daily -- and a projected 80% of those aged 65 or older will be leaving the workforce. By 2030, one in five Americans is expected to be over 65, signaling a crucial turning point for the retirement planning industry. Source: Planadviser.com »» Click here for More Studies, Research, and White Papers Auto 401k Plan Features 401k Auto-Features Aren't Set-It-and-Forget-It Auto-enrollment and auto-escalation are popular tools in the retirement plan industry, appreciated by plan sponsors for simplifying participant engagement and increasing savings rates. While they may give an impression of effortless progress, relying on these features without active management can lead to serious fiduciary risks. Despite their effectiveness in enhancing participation and outcomes, seasoned plan sponsors recognize that retirement plans require continuous oversight and cannot be treated as entirely self-sufficient solutions. Source: Jdsupra.com »» Click here for more on Automatic 401k Plan Features Court and Legal DOL Isn't Finished With Amicus Briefs After recently commenting on one of the numerous forfeiture reallocation lawsuits, the Labor Department is now seeking to become involved in another case. They have requested an extension to submit an amicus brief concerning a forfeiture reallocation lawsuit involving Honeywell International. In this case, the fiduciary defendants have successfully won their motion to dismiss, on two occasions, most recently last July, and this time with prejudice. Source: Psca.org LifePoint Health's Motion to Dismiss 401k Class Action Denied Six former and current employees filed a lawsuit against LifePoint Health on behalf of all individuals who participated in the company's 401k plan since August 15, 2018. The plaintiffs allege that LifePoint, its Board of Directors, and other fiduciaries breached their duties under ERISA by mismanaging the plan, failing to properly monitor it, and charging excessive fees. A federal district court judge in Tennessee has denied LifePoint's motion to dismiss the case, allowing the claims to proceed regarding the alleged improper use of forfeited 401k contributions. Source: Hallbenefitslaw.comg Former Partner Files ERISA Class Action Against Husch Blackwell for Delayed 401k Contributions A former equity partner at Husch Blackwell LLP has initiated a proposed class action lawsuit against the law firm, claiming it unlawfully withheld and misused employee 401k contributions. The case, filed in the U.S. District Court for the Western District of Missouri, alleges violations of ERISA for holding employee salary deferrals and using them to cover operational costs. The former partner argues that this practice deprived employees of potential investment growth and jeopardized the retirement plan. Husch Blackwell operates a 401k plan for about 400 participants, primarily funded through paycheck deductions. Source: Hallbenefitslaw.comg Four Big ERISA Litigation Developments From 2025's 2nd Half The Eleventh Circuit has indicated a potential shift in its precedent, which could facilitate access to the courts for federal benefits lawsuits. In contrast, the Second Circuit dismissed a challenge regarding a union pension plan's focus on private equity investments. Here's a recap of these developments, along with two other notable updates in ERISA litigation from the latter half of 2025 that benefits attorneys should keep on their radar. Source: Wagnerlawgroup.com »» Click here for more Court and Other Legal Issues Legislative or Washington DC New House Bill Revives Push for Automatic Retirement Accounts for Uncovered Workers Proposed legislation requires employers with at least 10 employees to automatically enroll their workers in individual retirement accounts if they do not already offer a retirement plan. Representative Richard Neal of Massachusetts reintroduced this bill, aimed at providing retirement savings options for gig workers and independent contractors who lack access to defined contribution plans. Source: Planadviser.com »» Click here for more on Legislative and Washington Actions Marketplace News Seekr, Stephano Slack Partner on AI Agents to Slash 401k Audit Time 90% 2025 Lifetime Achievement Award Winners Announced by EBRI
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