By Chris Cristallo, CFP® | BGA 401k
As the days get longer and the pace of business quickens heading into summer, May is the perfect time for plan sponsors to revisit their company 401(k) plan. A midyear check-in can help you identify opportunities to strengthen your plan, engage employees, and meet your fiduciary responsibilities — before the second half of the year gets too busy.
Here are some key areas to review this spring:
Review Participation and Contribution Rates
Take a close look at how many employees are actively participating in the plan and what percentage of their income they are contributing. If participation or contribution rates are lower than expected, it may be time to promote the plan more actively. Simple steps — like hosting a reminder webinar, sending targeted emails, or highlighting the employer match — can go a long way. If you offer automatic enrollment or automatic escalation features, consider whether it is time to fine-tune those defaults to drive better outcomes.
Benchmark Your Fees and Investment Options
Fiduciaries are required to ensure that the fees associated with the plan are reasonable compared to the services provided.
May is a great time to review:
- Recordkeeping costs
- Investment management fees
- Any other service provider fees
It is also important to check whether your investment lineup is still competitive and aligned with participant needs. Are your funds performing well relative to benchmarks and peers? Are there any redundant or underperforming options that could be replaced?
A formal fee and investment review helps you fulfill your fiduciary duties — and shows participants that you are looking out for their best interests.
Promote the Employer Match
If you offer an employer match, make sure your employees know about it — and understand how valuable it is. A match is one of the most powerful tools you have for encouraging retirement savings, but many employees underestimate its value unless it is clearly communicated.
Consider sending out a simple reminder: “Are you maximizing your employer match this year?” Small nudges like this can dramatically increase employee savings behavior over time.
Stay Ahead of Compliance Updates
The regulatory environment for retirement plans continues to evolve, especially with ongoing Secure Act 2.0 changes taking effect throughout 2025. Updates like mandatory Roth treatment for catch-up contributions, higher catch-up limits for certain earners, and student loan matching are reshaping the retirement plan landscape.
Plan sponsors should stay proactive by:
- Reviewing plan documents for required amendments
- Updating payroll processes to reflect new contribution rules
- Educating employees about changes that impact them
Compliance is not just about avoiding penalties — it is also about helping employees get the most from the plan you offer.
Enhance Financial Wellness Initiatives
Financial stress remains a top concern for employees — and it often shows up in productivity, absenteeism, and retention rates. Your retirement plan can be a powerful tool to promote financial wellness, but it works even better when paired with education and support.
This spring, think about adding initiatives like:
- On-demand financial education content
- Webinars on topics like budgeting, investing basics, and managing debt
- One-on-one meetings with a financial advisor for personalized guidance
Employees who feel more confident about their finances are more likely to participate in the plan — and stay loyal to your company.
Check Beneficiary Information
Life changes happen. Employees get married, divorced, have children, or experience other major life events — but they often forget to update their beneficiary designations.
As a plan sponsor, a reminder email or a quick prompt during open enrollment can encourage employees to review and update their designations. It is a simple step that can prevent major legal headaches down the road.
Strengthen Your Investment Committee Process
If your plan has an investment committee, spring is a good time to:
- Review and document meeting minutes
- Confirm that roles and responsibilities are clearly defined
- Schedule your next formal review of the plan’s investments and fees
A well-run committee, with thorough documentation, is a critical defense if fiduciary questions ever arise.
Time to Take Action
Taking a fresh look at your retirement plan now can make a real difference — both for your employees and for your organization’s overall risk management. Spring is not just a time for cleaning; it is a time for renewing your commitment to offering a best-in-class retirement plan.
If you are ready to:
- Benchmark your plan fees
- Review your investment lineup
- Evaluate your compliance with Secure Act 2.0
- Launch new financial wellness initiatives
We are here to help.
Reach out to us today to schedule a complimentary 401(k) plan review.
Let us help you build a retirement plan that grows stronger with every season.
Together, let’s elevate the way we approach retirement programs.
Christopher A. Cristallo, MBA, CFP®
Qualified Retirement Plan Advisor