401(k) Real Talk Episode 201: July 15, 2026
Welcome to this week’s edition of 401(k) Real Talk, where Fred Barstein, Wealth Management RPA Channel Contributing Editor, reviews all of the industry news from the past week and picks the five most important/interesting stories.
Must read:
Read the full transcript below.
Hello and welcome to this week’s edition of 401k Real Talk. This is by WealthManagement RPA omnichannel and Fred Barstein, CEO of TRAU, TPSU and 401kTV Contributing Editor – I Review all of them Choose this week’s stories and the most important and interesting ones for a frank and open discussion you won’t find anywhere else. So let’s be real!
First story
Two senior former EBSA executives have warned that a $10 million cut to EBSA’s budget will significantly impact the agency’s effectiveness by limiting investigations, enforcement actions and directives.
Lisa Gomez, a former EBSA director under Biden, and Ali Kawar, a 20-year veteran, say the department is under current budget strain and that the cuts will affect the call center’s ability to respond to inquiries that often require investigations.
Coupled with EBSA’s initiative to limit further amicus curiae briefs to litigation, there may be less protection for plans and participants. As health care and benefit plans begin the same disclosure and trust journey that DC plans faced 20 years ago due to new laws and regulations, EBSA may not be able to provide much assistance with limited staff and budgets.
Next story:
Noted legal and industry expert Jason Roberts makes the case that wealth advisors can be an engine of growth and generate more predictable income, but believe they do twice the work and half the compensation, making them more interested in working on DC plans.
Beyond the perceived opportunities to convert participants into wealth clients and capture rollovers, Roberts emphasized that small business owners who are forced to offer retirement plans due to government mandates are the most attractive wealth clients.
With better technology and more data available, Roberts advises wealth companies to adopt a more streamlined service model and a clear compliance framework through streamlined plan design and PEPs.
Next story
A JD Power survey revealed fundamental changes in the increasing adoption of AI by financial advisory firms. Employee-based organizations will increase from 44% to 73% by 2025, while independents will grow from 19% to 42%.
The use of AI has impacted performance management and talent development beyond traditional consulting-assisted development, resulting in higher employee satisfaction, loyalty and productivity.
The top-rated staffing firms were Stifel, Raymond James, and Edward Jones, while Commonwealth, LPL, and Raymond James led the independents.
Next story
Growing to $30 billion by the end of 2025, the Georgetown Center for Retirement Initiatives offers some guidance on how to choose the right plan and what to consider.
Key factors, while most foster employers already sponsor a plan, include fees, potential conflicts of interest, and how to opt out of a PEP. Auditing can save organizations money, but it can increase costs for small employers. Fund charges in PEP may be lower but may not be affected by additional schemes using low cost index funds and CITs.
Georgetown warns of conflicts of interest when PPP is the record custodian or asset manager, recommending greater DOL oversight. The administrative burden and costs of opting out of PEP should be reconsidered by Georgetown recommending new rules and regulations.
Meanwhile, Cerulli sees PEP as a growth engine for record keepers.
at last
Record keepers, asset managers and technology companies spend tens of millions each year on market research and product development in search of the next big thing. But there are much easier ways to determine whether a product or service category resonates.
Read my recent WealthManagement.com/RPA column about three key factors driving change in 401k plans.
Finish it
So those were the most important stories last week. I’ve listed a few others that I think should be covered:
PEPs priority records
What consultants value in wholesalers
How the new DOE secretary will affect EBSA priorities
The UK NEST scheme creates a new VC arm
RCH and Deloitte partner to advance retirement savings technology
Please let me know if I missed anything or would like to comment. Otherwise, I look forward to speaking with you next week on 401k Real Talk.
