When participants assume alignment without verification, problems remain hidden until they are too large to ignore. Misalignment doesn’t announce itself—it compounds quietly, year after year.
Tag "QDIA"
The calendar flipped to 2026, and with it came a fresh crop of 401k new year opportunities. Will this be the year 403(b) plans finally shed legacy costs, SECURE 2.0 provisions hit their stride, and markets remind participants that risk never really sleeps?
Such hesitation shifts the spotlight back to fiduciary fundamentals. New rules may widen the menu, but ERISA doesn’t relax the obligation to fully understand and monitor what’s offered.
For ERISA fiduciaries, the challenge is clear: move beyond the default, and design a 401k plan that truly serves the diverse needs of its participants. In doing so, you not only safeguard retirement incomes but also reinforce the trust placed in you by those relying on your expertise.
Making matters worse is the changing regulatory environment once the new SECURE Act 2.0 rules become effective. The good news is the dust settles after that.
Here the intent is to make it possible for a plan/IRA to apply the QDIA safe harbor to involuntary rollovers. But how will this impact plan participants?
Plan sponsors ought naturally to know how the plan addresses the needs of their business, but do they really know how to tweak the plan to improve outcomes?
The antiseptic compliance regime spelled out by the DOL and ERISA has to date defined fiduciary services. Perhaps, if we’re going to consider what is “beyond” that sterile definition, we might want to go back to the future. In a sense, rediscovering where “fiduciary” initially came from might suggest where it is headed.
This week is all about those wayward 401k features that are well beyond their expiration date. Careful, though. In the process, you’ll see what’s garbage to one is a work of art to another.
What Happens When Everyone Starts Caring About Their 401k?
The long bull market has masked serious risk in target-date funds near retirement. When the next correction hits, participants who thought they were “protected” will wake up—angry—and demand change.