The broader plan-design conversation, including “Beyond Auto-Mania,” shows a shift from simple auto-features to guided, retirement-readiness approaches. That trajectory supports treating embedded income as part of a holistic, user-friendly design rather than a fringe option.
Tag "TDF"
By proactively addressing these critical 401k plan sponsor questions, sponsors can enhance their plans, protect participants, and shield themselves from unnecessary fiduciary exposure.
Here’s where the real disconnect kicks in: participants and pros don’t speak the same language on risk. Participants “feel” it. Meanwhile, advisers whip out rulers like standard deviation or some index, measuring volatility in neat little boxes.
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?
If you have any experience in the retirement plan business, some predictions just write themselves. As in “an incredible feeling of déjà vu.”
There might be a there, there. It could be that TDFs have an Achilles’ Heel that leaves them vulnerable.
The conflicts-of-interest inherent in selecting proprietary funds are apparent. Less so are the criteria used to determine what a suitable process might be.
But that idea contained a flaw. In the early years, limited choices made it easy for employees. The proliferation of the number of options in later years, however, exposed the lack of sophistication within the employee cohort. That can lead to bad decision-making. Alternative solutions were needed.
It’s not just plan sponsors and plan participants that need convincing. The entire retirement plan infrastructure must also get on board. That doesn’t mean the hurdles can’t be overcome.
5 Underreported 401k Stories From The Summer Of 2025
Not all impactful changes come from courtrooms or market forecasts. Sometimes the quietest adjustments happen in the administrative framework of retirement plans. This summer, two such moves stood out as underreported 401k stories that carry both promise and peril for fiduciaries.