On August 7, 2025, President Donald Trump released an executive order to attempt to permit alternative assets among 401(k) investment options. It marks a shift away from Biden-era guidance that discouraged alternative assets in 401(k)s.
Articles Discussing 401(k) Plans.
A Fiduciary’s Next Steps After Trump’s August 2025 Executive Order: Opening the 401(k) Door to Alternative Investments
Introduction On August 7, 2025, President Donald J. Trump issued an Executive Order designed to broaden access to alternative investments, such as private
DOL Plans to Replace ESG Rule for Retirement Plan Fiduciaries
The U.S. Department of Labor (DOL) indicated in court documents that it intends to begin new rulemaking to replace a previous rule that permitted 401(k) plan fiduciaries to consider environmental, social, and governance (ESG) factors when choosing investment options in the plan.
Catching Up on 401(k) Catch-Up Changes for 2025
Under current law, most 401(k) plans permit catch-up contributions that are equally available to all participants who are age fifty or over. Starting in 2025, the SECURE 2.0 Act allows eligible participants who are ages sixty to sixty-three to make “super-catch-up contributions” of up to the greater of: $10,000, or
Just In Time: IRS Proposes Regulations on 401(k) Eligibility for Long-Term Part-Time Employees
Federal Court Dismisses Case Alleging Breach of ERISA Fiduciary Duties in 401(k) Class Action
Fiduciaries of retirement plans continue to be plagued by class actions brought under the Employee Retirement Income Security Act (ERISA) challenging their fiduciary management of investment options and participant fees. A recent federal court decision, however, shows that fiduciaries of ERISA retirement plans may be able to attack and
Annual Notice of Discretionary Match in ‘Pre-Approved’ 401(k) Plans May Be Required Soon!
Employers that provide 401(k) plans on documents that have been “pre-approved” by the Internal Revenue Service (IRS) beware: there is yet another annual notice requirement that may need to be added to your compliance list.
DOL Issues Guidance on Use of Cryptocurrency in 401(k) Plans
On March 10, 2022, the Department of Labor issued guidance on the use of cryptocurrency in plans governed by ERISA. The announcement applies to cryptocurrencies as well as digital assets, which include “tokens,” “coins,” “crypto assets” and any derivates thereof.
401(k) Plans Using Pre-approved Plan Documents Must Be Restated by July 31, 2022
In Announcement 2020-7, the Internal Revenue Service (IRS) announced employers’ deadline by which to adopt new plan documents related to Notice 2017-37. The new announcement informs employers that maintain defined contribution plans (e.g., 401(k) plans, profit-sharing plans, and money purchase plans) through the adoption of IRS pre-approved plan documents that
Dealing With Missing Participants in Terminating Puerto Rico 401(k) Plans
For a host of legal and practical reasons, the only feasible alternative for disposing of the accounts of missing participants in a terminating 401(k) or other defined contribution retirement plan qualified only in Puerto Rico (commonly known as a “P.R.-only plan”) is, after making reasonable efforts to locate the missing
“Defined Contribution Plans, Section 401(k) Plans: Tax Aspects,” Bloomberg Law Benefits Guide
Susan Chambers, a partner in the Tax Practice Group in the New Orleans office, and Linda Bounds Keng, a partner in the firm’s Tax Practice Group in the Jackson office, authored the chapter titled “Defined Contribution Plans, Section 401(k) Plans: Tax Aspects” in the Bloomberg Law Benefits Guide.
401(k) Plan Sponsors—Do You Need to Start Tracking Hours for Your Part-Time Employees?
At the end of 2019, President Donald Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which included a number of changes to employer-sponsored retirement plans. One change involved expanding the ability of long-term, part-time employees to make 401(k) deferral contributions. While this change becomes
Department of Labor Releases Guidance for 401(k) Plan Investments in Private Equity
Last month the US Department of Labor (Department) issued an Information Letter stating that it is possible for individual account plans subject to the Employee Retirement Income Security Act of 1974 (ERISA) to offer limited private equity investments in a manner that complies with ERISA, provided certain suitability issues are considered by plan fiduciaries. The Information Letter confirms that a plan fiduciary would not violate ERISA fiduciary duties “solely because the fiduciary offers a professionally managed asset allocation fund with a private equity component.” Similarly, the Information Letter confirms that fiduciaries may offer private equity as a small component of an ERISA plan’s diversified investment option, like a target date fund, a target risk fund, or a balanced fund.
Suspending Safe Harbor Contributions Mid-Year: A Primer for Employers
As cash flow and decreased revenue concerns rise, many employers are looking for ways to cut costs. This article generally identifies the circumstances that allow a safe harbor 401(k) plan sponsor to suspend safe harbor contributions and the related consequences of such suspensions.
Northrup Grumman Agrees to Settle 401(k) Excessive Fee Suit
Northrop Grumman has agreed to pay $12,375,000 to settle a class action brought under the Employee Retirement Income Security Act (“ERISA”) by participants in its 401(k) plan. The parties reached the initial terms of this settlement last year minutes before the start of the trial.