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Is Your Retirement Plan Ready for Today’s Cybersecurity Threats?

Practical steps to help protect participants’ data and meet your fiduciary duties.

As a retirement plan sponsor, you are juggling plenty of responsibilities. Investment oversight, fee monitoring, participant education… the list goes on. Now there’s another item on your priority list: cybersecurity.

If you’re thinking “cybersecurity is an IT issue,” you’re not alone. Many plan sponsors assume data protection falls outside their wheelhouse. But when it comes to your 401(k) plan, cybersecurity is very much a fiduciary responsibility, and it’s one that can have serious consequences if you don’t address it properly.

Why cybercriminals target retirement plans

Retirement plans contain exactly the type of information cybercriminals value most. Think about the sensitive information stored in your plan’s database:

  • Social Security numbers
  • Birthdates
  • Salary information
  • Account balances
  • Beneficiary details

This treasure trove of personal and financial data represents a one-stop shop for identity theft and financial fraud.

The substantial assets held in retirement accounts also make them attractive targets. With the average 401(k) balance continuing to grow, and many accounts holding six-figure sums, the potential payoff for successful cyberattacks keeps increasing.

What the Department of Labor expects

The DOL has made it clear that cybersecurity falls squarely within plan sponsors’ fiduciary duties. The agency’s updated 2024 guidance confirms that all ERISA plans must have appropriate cybersecurity measures in place to protect participants and beneficiaries from cybercrimes.

This means that plan sponsors must exercise the same level of prudent oversight for cybersecurity as they do for investment selection and fee monitoring. Plan sponsor compliance isn’t just checking boxes; it’s demonstrating that you’re taking reasonable steps to protect participant information and plan assets.

Building your cybersecurity foundation

The good news is that effective cybersecurity doesn’t require you to become a technical expert. It does, however, require a systematic approach and attention to key areas that can significantly reduce your risk.

  • Protect data. Encrypt participant information and require multi-factor authentication.
  • Train employees. Teach them to spot phishing, use strong passwords, and report issues.
  • Plan for incidents. Have a response plan to minimize damage and show your commitment to safeguarding participant data.

Monitor service providers carefully

Most plan sponsors rely on recordkeepers, payroll companies, TPAs, and other providers. Since these vendors have access to participant data, their cybersecurity practices directly affect your plan’s exposure to potential risks.

When choosing a vendor, ask specific questions. Check their security measures, certifications, and incident handling. Don’t hesitate to ask the tough questions; your fiduciary duty requires this level of due diligence.

Keep tabs on your providers’ security through regular updates and audit report reviews to help confirm they have proper protections in place. Make sure your service contracts include clearly- defined cybersecurity requirements and detailed notification procedures for any security incidents.

Developing your cybersecurity policy

A well-documented cybersecurity policy provides detailed guidance for employees, demonstrates your commitment to data protection, and can be valuable evidence of prudent fiduciary oversight.

Your cybersecurity policy should include these essential action components:

  • Define what constitutes sensitive plan data and how it should be handled.
  • Specify who can access plan systems and under what circumstances.
  • Outline mandatory cybersecurity training and ongoing education.
  • Establish minimum security requirements for all service providers.
  • Detail steps to take when a security incident occurs.
  • Schedule periodic reviews and security updates.

Creating a culture of cybersecurity awareness

Effective cybersecurity requires buy-in from your entire organization, not just the IT department. Leadership support demonstrates the importance of data protection and helps allocate resources for security initiatives.

Regular communication about cybersecurity threats and best practices helps to promote security awareness.

  • Send reminders about common threats.
  • Recognize employees who report suspicious activity.
  • Update staff on new security measures.

When cybersecurity becomes part of your culture, your potential risks decline significantly.

Taking the next step

Implementing cybersecurity measures and staying current with evolving regulatory requirements may seem daunting, but keep in mind that you don’t have to go it alone. Many plan sponsors find that working with experienced advisors and cybersecurity professionals helps them to develop appropriate protection measures without getting overwhelmed by technical details.

Start by honestly assessing your current cybersecurity practices. Review your existing policies, evaluate your service providers’ security measures, and identify any obvious gaps in protection.

________________________________________

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission.

________________________________________

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2026 Contribution Limits

The new Retirement Plan Contribution Limits are official!

The following limits are going up for 2026:

  • Maximum contributions for 401(k), 403(b) and 457 increased to $24,500
  • Maximum contributions for SIMPLE retirement accounts increased to $17,000
  • Maximum contributions for Defined Contribution Limit increased to $72,000
  • Super Catch-up for Age 60-63 remained the same at $11,250

Review the full list of contribution limit changes below and share with your plan participants!

2026 Contribution Limits

PPS_2025 Contribution LimitsDownload

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

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Employee Education: Retirement Transition Planning

Retirement Transition: More Than Just Finances

Retirement is more than just a financial decision; it’s a major life transition. This presentation explores how to prepare emotionally and practically, covering purpose, connection, structure, and planning. The goal is to have real conversations around the emotional impact this major life transition can have on you, so that you are more prepared.

Watch the Video

This short video discusses 5 key action areas:

  • Understand emotional changes and normalize the transition process.
  • Reframe your identity and explore new passions post-career.
  • Discover the importance of social relationships and how to stay meaningfully connected.
  • Build a personalized rhythm of activities that align with your motivation style.
  • Combine financial discussions with lifestyle goals to create a cohesive retirement plan.

You can also download this practical guide to help yourself or others prepare for retirement by focusing on the emotional and lifestyle aspects of the transition, and not just finances. It includes prompts and tools to support self-reflection, connection, purpose, structure, and aligning daily life with long-term goals.

Designed to empower near retirees with clarity and confidence, it complements financial planning with personal readiness.

Download Retirement Transition – Navigating Change with Confidence

PPS-Retirement Transition Planning-EE WorksheetDownload

Benefits of Financial Education

  • For employees: Better planning leads to less stress, more focus, and increased financial confidence.
  • For employers: When employees are financially-educated and equipped to retire on time, the company benefits from a happier, more engaged, and better prepared workforce.

Looking for More Employee Education?

Supporting teams with ongoing education builds morale and engagement. Contact us to explore ways to keep employees connected with valuable resources.

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

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Protecting Your Employees from Bad Financial Advice

Why human-led employee education still matters

It’s wonderful to live in a time when answers are just a click away. You can easily find out how many inches are in a meter, get TV show recommendations, and find out where the next Olympic Games will happen. But when it comes to financial advice, the internet becomes a far riskier place.

From TikTok tips to viral Reddit threads, employees are consuming an overwhelming amount of financial content, and not all of it is accurate. In fact, much of it can be misleading, incomplete, or flat-out wrong. And while younger generations are the most likely to seek out this digital advice, they’re also the most vulnerable to its consequences.

Online financial information is popular

Social media platforms and influencer content are not inherently bad, but they are unregulated. Anyone with a camera and confidence can offer “advice” without any credentials. This opens the door to the kind of misinformation that can lead employees to make costly mistakes.

It’s especially concerning for younger employees. A recent survey found that 49% of Gen Z and 43% of millennials have sought financial advice on social media. Top sources for digital advice are Facebook, Instagram, TikTok, Twitter/X, and financial influencers from other platforms.1 This may makes them more susceptible to making costly financial decisions, such as buying into trendy “get rich quick” schemes, misusing credit, or delaying critical savings milestones like retirement contributions.

The drawbacks of online financial advice

While it’s easy and convenient to look online for financial advice, the information found may be incomplete, misleading, or inaccurate.

“While some platforms have added disclaimers or warning labels on financial advice content…the risk of making misguided investment decisions due to misinformation and fraud is greater than the risk would be if the advice was taken from traditional advice channels. In the first six months of 2023, the Federal Trade Commission reported losses totaling $2.7 billion from investment-related fraudulent scams initiated on social media in the US alone; 37% of those fraud losses were reported by investors aged 20-29,” explained the World Economic Forum. [1]

When your employees receive and act on poor financial information, it can have a detrimental effect on financial wellness. Workers who are financially stressed may become less engaged and less productive – and that can hurt employers.

Pros and Cons of Financial Education Sources

SourcePersonalized to IndividualRisk of MisinformationSupports Financial WellnessLooks to Improves Productivity
Financial AdvisorsYesLowYesYes
Social Media & Unlicensed InfluencersNoHighPossiblyPossibly

The advantages of in-person employee education

While employees will continue to seek advice online, it’s possible to help them avoid costly errors by offering in-person financial education at work. A licensed financial professional can engage employees through group meetings or one-on-one sessions. Either possibility will give employees opportunities to:

  • Receive personalized financial education from a licensed professional
  • Double-check the accuracy and applicability of advice they’ve found online
  • Choose saving strategies that reflect their personal finances and goals
  • Build financial confidence while improving their financial security

When employers want to deliver financial education that supports financial wellness and retirement outcomes, partnering with a retirement plan advisor makes a real difference. Advisors can deliver robust financial education programs and fill education gaps with tailored, relatable content that can improve employee decision-making and overall financial wellness.

If you would like a complimentary consultation or a demonstration of our services, please get in touch. We are experienced employee educators who understand the importance of financial wellness.

________________________________________

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission.

__________________________________

[1] Aru Bhat and Sofia Eckrich. “Are ‘finfluencers’ the future of financial advice?” World Economic Forum. July 17, 2024. Cited June 27, 2025.

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Plan Sponsor Newsletter: Plan Design Considerations Edition

Retirement plan rules are changing, and we are here to keep you informed and updated. Here’s what you need to know:

  • Plan Provisions & SECURE Act 2.0: Automatic enrollment, Roth options, student loan matching, and more. Is your plan designed for today’s workforce?
  • Retirement Readiness: Employees need simple, helpful education to make confident choices. How to utilize pre-retiree education to support their journey.
  • Forfeitures, Missing Participants, & Force-Outs: Unvested dollars, outdated contact info, and small accounts can drag your plan down. A quick checklist to clean things up!
PPS-Plan Design Considerations-Q3 2025 EmployerDownload

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

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Americans Are Retiring Later: Here’s Why

Employers can help improve retirement readiness, so workers retire on time.

More workers are planning to retire at 70—or never. This could impact your workplace. What’s holding them back?

  • High savings goals
  • Debt and other financial stressors
  • Healthcare concerns
  • Anxiety about leaving work

The good news? You can help them feel more ready for retirement by providing helpful education, promoting catch-up savings options, sharing practical healthcare strategies, and offering phased retirement options.

PPS-Why Americans Are Retiring Later-GuideDownload

Let’s chat if you’d like to talk more!

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC.  All rights reserved. Proprietary and confidential.  Do not copy or distribute outside original intent.

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3 Plan Health Essentials: Forfeitures, Missing Participants, and Force-Outs

A strategic look at your 401(k) plan’s health

Ever looked at your company’s 401(k) plan and spotted the name of an old colleague?

It takes you down memory lane—you pause and think, “I wonder how they’re doing?”

That familiar name may trigger a harmless moment of nostalgia. But it could be a signal for something bigger. It might point to a missing participant, an untouched forfeiture, or an opportunity to clean up your plan and uncover hidden value.

As a business leader, you know that small details matter. They can directly impact operational costs, reduce audit exposure, and strengthen overall plan health. Three key areas—forfeitures, missing participants, and force-outs—are often missed but can make a big difference.

1. Forfeitures: unlocking hidden plan assets

When an employee leaves before becoming fully vested in their retirement account, the unvested employer contributions don’t vanish. They’re moved into a forfeiture account. These funds can be a valuable resource if used properly and in accordance with the plan document.

Forfeiture funds can be used to:

  • Pay allowable plan administrative expenses
  • Offset future employer contributions
  • Be reallocated as additional employer contributions to active participants

Many plans unknowingly let these dollars sit idle, or worse, don’t use them within the required timeframe (generally by the end of the current plan year or the following year). This not only risks non-compliance but also leaves budget-saving opportunities on the table.

Tip: Review your plan document and forfeiture balances with your service provider. If there’s money sitting in the account, put it to work—it’s already yours.

2. Missing participants: a silent threat to plan integrity

Missing participants are former employees who still have money in the plan, but their contact information is outdated or unknown. Even though they’re no longer active, they still count toward total plan participants, which can have consequences.

Here’s why it matters:

  • Plans with 100+ account balances require an annual audit
  • You may continue sending costly required notices
  • You expose the plan to fiduciary and regulatory risk

The Department of Labor (DOL) has published guidance on how to find these individuals, including:

  • Conducting address searches
  • Sending certified mail
  • Contacting emergency or plan-designated contacts
  • Keeping documentation of all efforts

Tip: Build a process for updating participant information regularly. Clean participant data can help you avoid unnecessary audits and strengthen fiduciary governance.

3. Force-outs: a smart way to streamline

Force-outs, also called involuntary cash-outs, allow plan sponsors to remove small account balances for terminated employees. Under $1,000? The participant can typically be cashed out. Between $1,000–$7,000? Consider setting up a Safe Harbor IRA provision through your recordkeeper.

This approach helps:

  • Reduce total participant count
  • Lower administrative burden
  • Limit fiduciary risk tied to abandoned accounts

It demonstrates that you’re actively managing your plan, which can be helpful in the event of a DOL or IRS inquiry.

Tip: Work with your TPA or recordkeeper to review and implement force-out procedures. Even one or two distributions per year can make a big difference over time.

Keeping your plan clean pays off

When it comes to managing your company’s retirement plan, a little housekeeping goes a long way. Monitoring forfeitures, missing participants, and small-balance force-outs isn’t just busywork, it’s smart plan stewardship.

These simple actions can:

  • Free up unused funds
  • Reduce audit risk and costs
  • Improve data integrity
  • Reinforce your fiduciary duty

If it’s been a while since you’ve cleaned up your plan records, now’s a great time to take a closer look. That old coworker’s name on your report? It might just be the start of some extra savings and better plan health.

________________________________________

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission.

________________________________________

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Retirement Readiness Starts Now: Helping Employees Plan with Confidence

Practical ways employers can support their workforce’s financial future

Many Americans are thinking seriously about their financial future—and with good reason. The economy and rising cost of living have left people feeling uncertain about what lies ahead.

Recent research from the 2025 Transamerica Retirement Survey[1] offers a clearer picture of what today’s workforce is facing:

These numbers show that while many workers are thinking about retirement, most still need help getting—and staying—on track.

An opportunity for employers

This shift in mindset creates a meaningful opportunity for employers. A strong retirement education program can meet employees where they are. Programs that offer accessible tools and supportive guidance can help build financial confidence.

Covering topics such as financial wellness, healthcare, and retirement planning makes these programs more relevant and helpful to your team. With relevant resources, employees can move from uncertainty to action—one step at a time.

Supporting early preparation

Starting early can make a big difference when it comes to retirement. Many employers are helping by offering education, planning tools, and easy ways to start saving.

Employees often have a lot on their plates: paying bills, managing debt, and covering everyday costs can take priority. But with the right support, many are finding ways to balance short-term needs with long-term goals. Features like auto-enrollment and auto-escalation can make it even easier to get started.

Planning for retirement involves important decisions. People want to know how much to save, when to claim Social Security, and how to turn savings into income. That can feel like a lot, but with simple resources and helpful guidance, it’s easier to confidently take the next step.

Retirement readiness education

Employees need clear, helpful retirement education and easy-to-use planning tools. The following best practices can make your education program more effective:

  • Offer targeted and ongoing education. People want information that helps solve real problems. Since employees face different challenges, targeted messages for different groups can work well. It’s also helpful to offer education often, so that new employees or those with changing needs can stay informed.
  • Use adult learning principles. Adults want to know why something matters before they engage. They are more likely to learn when the content is useful and focused on solutions.
  • Share information in different ways. Everyone learns a little differently. Education can be shared in short messages like emails, posters, or videos. It can also be offered through longer formats like webinars, one-on-one sessions, or recorded presentations.
  • Keep it simple. Use straight-forward language and avoid jargon. The easier the message is to follow, the more likely employees are to use the information.
  • Make it relevant. Tailor your education program to fit your company. Include details about your plan, plus helpful topics like investing, risk and reward, asset allocation, and the value of long-term planning.
  • Include ways to interact. People remember more when they use what they’ve learned. Add activities or short breaks that let employees think through the material and apply it.

A path forward

Retirement planning is a journey. Employees need guidance, support, and tools they can trust along the way. When employers offer thoughtful education programs—built around real-life needs and clear communication—they help remove uncertainty and encourage action.

By making retirement readiness a priority, you’re not just helping your employees plan for their future; you’re also creating a stronger, more confident workforce today.

________________________________________

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission.

________________________________________

[1] Collinson, Catherine, et al. “Retirement in the USA: The Outlook of the Workforce.” Transamerica Institute. Mar. 2025.

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Pre-retirement Savings Guide

Smart strategies to optimize your retirement savings and prepare for what’s ahead

Retirement might feel far away or right around the corner—but either way, it’s important to be prepared! The new Pre-retirement Savings Guide and on-demand video are here to help you make confident choices.

Watch the Video

What you’ll learn:

  • Saving benchmarks to help you see if your savings are on track
  • Social Security tips for making the most of your benefits
  • Medicare breakdowns to help avoid surprises
  • Smart strategies for boosting your savings

You can also download the corresponding worksheet to help you feel more prepared for your next chapter.

PPS-Preretirement Savings Guide-EE WorksheetDownload

Benefits of Financial Education

  • For employees: Better planning leads to less stress, more focus, and increased financial confidence.
  • For employers: Financially-educated teams are happier, more engaged, and better prepared for the future. When employees are equipped to retire on time, organizations can reduce the rising costs associated with delayed retirement—such as higher healthcare expenses and slower workforce transitions.

Looking for More Employee Education?

Supporting teams with ongoing education builds morale and engagement. Contact us to explore ways to keep employees connected with valuable resources.

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

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6 Trending Plan Provisions: What’s New and What to Know

Understand the pros, cons, and considerations for moving forward

It started with a simple question during a leadership meeting:

“What’s in our 401(k) plan—and are plan provisions still working for our team the way they should?”

The CEO glanced around the room. No one had a clear answer. The plan had been in place for years, maybe even decades. It quietly ran in the background while the company grew. But things had changed. New hires were asking about Roth options. Long-time employees were thinking about their retirement around the corner. And recent headlines about SECURE Act 2.0 raised more questions. It was clear the time had come to take a closer look.

This scenario is playing out in boardrooms across the country. Retirement plans—once seen as “set it and forget it”—are now under the spotlight. Rules are changing. Teams are growing more diverse. And there’s a bigger focus on financial health. Many plan sponsors are asking: Is our plan still a good fit?

A deeper look into plan provisions

Whether you’re a CEO, CFO, HR leader, or plan fiduciary, it’s important to understand your plan provisions and what updates might help. Today’s 401(k) plans offer more options than ever before. Features like automatic enrollment, student loan matching, and Roth conversions are gaining attention. Each plan provision brings unique pros, cons, and considerations.

Let’s take a closer look at the options shaping modern retirement plans and how to evaluate the right ones for your workforce.

1. Automatic enrollment and escalation

  • PRO: Automatic enrollment helps new employees start saving immediately, boosting participation rates. Automatic escalation slowly increases contribution rates over time. Both help employees save more without requiring them to take action.
  • CON: Higher participation may lead to increased employer match costs. Some employees may opt out if not fully educated on the benefits.
  • CONSIDERATION: SECURE Act 2.0 mandates auto-enrollment (starting at 3% and escalating annually by 1% up to 10-15%) for most new 401(k) plans beginning in 2025. Now is a good time to evaluate if your current plan includes this feature or if it should.

2. After-tax contributions and Roth conversions

  • PRO: Allows high earners to save beyond the traditional deferral limits. After-tax contributions can be converted to Roth at a later time, offering potential tax-free growth.
  • CON: Adds administrative complexity and may confuse employees, especially if they are unfamiliar with the nuances of after-tax vs. Roth.
  • CONSIDERATION: If your team values tax flexibility, these plan provisions may be worth adding. They’re especially helpful for high earners or younger employees focused on long-term growth.

3. Student loan matching

  • PRO: Helps younger employees balance debt repayment and retirement savings. It allows employers to “match” student loan payments with 401(k) contributions.
  • CON: Requires coordination with payroll and recordkeeping systems. Employees without student loans do not benefit.
  • CONSIDERATION: Supports financial wellness and may improve recruitment and retention with younger workforces.

4. $1,000 emergency withdrawals

  • PRO: Employees can access up to $1,000 per year for emergencies, penalty-free.
  • CON: Frequent withdrawals can reduce long-term retirement balances if not repaid.
  • CONSIDERATION: This provision addresses unexpected expenses without requiring loans or hardship withdrawals. They’re especially valuable in industries where employees may have less financial cushion.

5. Higher catch-up contributions

  • PRO: Employees ages 60–63 can contribute $11,250 for 2025 boosting retirement savings late in their careers.
  • CON: May disproportionately benefit higher earners unless paired with education and communication.
  • CONSIDERATION: Sponsors should confirm that their payroll provider and recordkeeper can support this provision. They should also make sure that older employees understand how it works and why it matters.

6. Plan portability and auto-rollovers

  • PRO: New rules streamline small account ($1,000 – $7,000) rollovers and auto-portability between employers. Keeps participant balances consolidated and helps improves retirement outcomes.
  • CON: Requires coordination with recordkeepers and third-party portability solutions.
  • CONSIDERATION: Plans with high turnover or seasonal workforces can benefit from this feature. It helps reduce administrative burden by removing small, inactive account balances.

Changing plan provisions: what to know

If you decide to update your retirement plan, the change process includes:

  • Amending the Plan Document – Formal plan amendments must be adopted in writing.
  • Communicating with participants – A summary plan description (SPD) or summary of material modifications (SMM) must be provided.
  • Effective date – Many SECURE 2.0 provisions can be implemented now, but several have default effective dates of January 1, 2026.

Why now is the time to review your plan

A simple question in a leadership meeting can lead to real change.

Today’s workforce expects more, and the retirement plan you offer plays a key role. Thoughtful plan provisions help address goals like recruitment, retention, and long-term financial wellness. Reviewing your plan can help you stay ahead of regulatory changes and evolving needs. Plus, it helps demonstrate your commitment to supporting employees at every stage of life. A modernized plan isn’t just a benefit; it’s a reflection of your company’s values.

Quick checklist for plan sponsors

Have you reviewed your plan provisions in the last 12 months?

  • Are you prepared for January 1, 2026 SECURE 2.0 changes?
  • Do your plan features match your workforce demographics?
  • Have you documented your fiduciary decision-making?

If not—now’s a great time to start.

________________________________________

PENSION PLAN SPECIALISTS, PC

805 Broadway, Suite 600

Vancouver, WA 98660

360-694-8409

pensionplanspecialists.com

info@TPAteam.com

This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

©401(k) Marketing, LLC. All rights reserved. Proprietary and confidential. Do not copy or distribute without permission.

________________________________________

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