Cunningham v. Cornell is testing whether traditional 401k fiduciary compliance truly protects plan sponsors. Courts and regulators are probing governance gaps, personal liability, and participant harm more aggressively than ever.
Compliance
Fiduciary litigation did not let up in 2025, and 2026 is seeing even more refined theories targeting 401k plans. Plan sponsors must look beyond procedural checklists to avoid the top governance pitfalls that trigger personal liability and erode participant savings.
Could Employer Matching On Trump Accounts Become The Next Fiduciary Recruiting Perk (And Liability)?
With contributions via employer programs not beginning until July 4, 2026 (IRS Notice 2025-68), sponsors who move quickly have a compressed window to design, test, and communicate the benefit. That compression creates both opportunity and risk.
Breaches hit fast. Fiduciaries must be ready to act. A documented incident response plan—including who to notify, how to contain the breach, and when to report it—is vital for 401k cyber protection. It demonstrates prudence and minimizes chaos.
Fiduciaries can no longer afford to treat cybersecurity as an IT department concern alone. In a world where digital breaches can wipe out savings, destroy trust, and invite costly lawsuits, cybersecurity has become inseparable from prudent plan management—and at least an implied fiduciary duty under ERISA.
AI fiduciary traps refer to compliance risks arising from inaccurate, biased, or undocumented AI outputs in 401k plan administration. Do you think the tort bar is salivating over this, waiting for that inevitable misstep?
The promise of automation glitters like a golden ticket, but it’s not without its shadows.
The blend of traditional and modern retirement plan types could evolve further with SECURE 3.0.
Proposals focus on recalibrating the program’s benefit formulas and exploring new contribution models to secure future solvency. Proponents argue that modernizing these aspects will help the program adapt to longer life spans and changing economic conditions without sacrificing current commitments.
If you look at headlines in the retirement industry trade press, rarely does a week go by when you don’t see an article lamenting the low retirement savings numbers. How do we change this?
