401(k) Real Talk Episode 201: July 15, 2026
Welcome to this week’s edition of 401(k) Real Talk, where Fred Barstein, contributing editor for Wealth Management’s RPA channel, reviews all of last week’s industry news and selects the five most important/interesting stories.
Worth Reading:
Read the full raw transcript below:
Greetings & a warm welcome to this week’s edition of 401k Real Talk. This is Fred Barstein contributing editor at WealthManagement’s RPA omnichannel and CEO at TRAU, TPSU & 401kTV – I review all of this week’s stories and select the most important and interesting ones providing open honest and candid discussion you will not get anyway else. So let’s get real!
FIRST STORY
Two senior former EBSA executives warn that the proposed $10m EBSA budget cut could severely impact the effectiveness of that agency limiting investigations, enforcement actions and guidance.
Lisa Gomez, former EBSA director under Biden, and Ali Khawar, a 20 year veteran, claim that the department was stressed under the current budget and that cuts could affect the call center’s ability to answer questions which often times triggers investigations.
Coupled with EBSA’s initiatives to limit litigation filing more amicus curae briefs, there may be less protection for plans and participants. As healthcare and benefit plans begin the same disclosure and fiduciary journey that DC plans experienced 20 years ago as a result of new laws and regulations, EBSA may not be able to offer much assistance with limited staff and budget.
Next story:
Noted legal and industry expert Jason Roberts makes the case for wealth advisors to be more interested in working on DC plans even though he concedes they are twice the work and half the compensation arguing that they can be a growth engine and provide more predicable revenue.
Beyond the obvious opportunities to convert participants into wealth clients and capture rollovers, Roberts emphasizes that small business owners that are forced to offer a retirement plan because of government mandates are very attractive wealth clients.
With better tech and more available data, Roberts recommends that wealth firms adopt an efficient service model and clear compliance framework through streamlined plan design and PEPs.
NEXT STORY
A JD Power survey shows increased adoption of AI by financial advisory firms resulting in fundamental changes. Employee based firms saw an increase in active usage from 44% in 2025 to 73% while independents increased to 42% from just 19%.
AI usage impacted practice management and talent development beyond traditional mentorship supporting growth resulting in greater employee satisfaction, loyalty and productivity.
Top rated employee firms included Stiffel, Raymond James and Edward Jones while Commonwealth, LPL and Raymond James led independents.
NEXT STORY
With PEPs growing to $30 bn at the end of 2025, the Georgetown Center for Retirement Initiatives provides some guidance on how to pick the right plan and things to consider.
Key factors, with most adopting employers already sponsoring a plan, include fees, potential conflicts of interest and how to exit the PEP. Firms subject to audits can save money but it might increase costs for smaller employers. Fund fees in a PEP can be lower but the impact may not be dramatic with more plans using low cost index funds and CITs.
Georgetown warns about conflicts of interest when the PPP is a record keeper or asset manager recommending more DOL oversight. The administrative burden and costs to exit a PEP needs to be revisited with Georgetown recommending new laws and regulations.
Meanwhile Cerulli reports that record keepers see PEPs as a growth engine.
FINALLY
Record keepers, asset managers and tech companies spend tens of millions annually on market research and product development looking to find the next great thing. But there are much simpler ways to determine whether a product or service category will resonate.
Read my recent WealthManagement.com/RPA column about the three key factors that drive change in 401k plans
FINISH
So those were the most important stories from the past week. I listed a few others I thought were worth reading covering:
Record keepers prioritizing PEPs
What advisors value in wholesalers
How new DOL Secretary may affect EBSA priorities
UK NEST plan creates new VC sleeve
RCH and Deloitte partner to advance retirement savings technology
Please let me know if I missed anything or if you would like to comment. Otherwise I look forward to speaking to you next week on 401k Real Talk.
