Understanding 401(k) Governance: Who’s Responsible for What in Your Retirement Plan

Key Takeaways

The plan sponsor (typically your employer) establishes the 401(k) plan, selects investment options, and makes strategic decisions about plan design—while the plan administrator handles daily operations like enrolling employees and processing contributions
Under ERISA law, both roles carry fiduciary responsibilities, but plan sponsors can reduce liability by delegating administrative duties to third-party administrators (TPAs)
For 2025, employee contribution limits increased to $23,500 (under age 50) and $31,000 (ages 50+), with new “super catch-up” provisions allowing ages 60-63 to contribute up to $34,750
Most employers serve as both sponsor and administrator by default, but 17% now outsource to specialized firms to reduce compliance risks and fiduciary liability
Recent SECURE 2.0 Act changes require high earners ($145,000+) to make catch-up contributions as Roth-only starting in 2026, forcing many plans to add Roth features or eliminate catch-up contributions

The Bottom Line on 401(k) Governance Roles

Plan sponsors design and oversee your 401(k) plan with ultimate authority over investment selections and compliance, while plan administrators execute the day-to-day operations—but in 83% of companies, the same employer fills both roles. Understanding this distinction matters because it determines who you contact for different issues: strategic questions about investment options go to the sponsor (usually your HR leadership), while enrollment questions or contribution problems go to the administrator (often your HR department or a third-party firm). The clearest difference: sponsors make decisions about the plan, administrators make decisions within the plan’s existing framework.

What Is a 401(k) Plan Sponsor?
What Is a 401(k) Plan Administrator?
What Are the Legal Responsibilities of Plan Sponsors Under ERISA?
What Daily Operations Do Plan Administrators Handle?
Can a Company Serve as Both Sponsor and Administrator?
How Do Third-Party Administrators Fit Into 401(k) Governance?
Who Bears Fiduciary Liability for Plan Decisions?
What Compliance Requirements Must Both Roles Meet?
How Have SECURE 2.0 Changes Affected Governance Responsibilities?
What Governance Model Works Best for Different Company Sizes?
What to Do Next
Frequently Asked Questions

What Is a 401(k) Plan Sponsor?

The plan sponsor is the employer or organization that establishes and maintains the 401(k) retirement plan for employees. Under ERISA Section 3(16)(B), plan sponsors hold ultimate authority over the plan’s existence and structure.

Plan sponsors perform two distinct types of functions. Settlor functions are business decisions made on behalf of the company itself—establishing the plan, determining benefit levels, setting eligibility criteria, deciding employer match structures, and amending or terminating the plan. These settlor decisions don’t trigger ERISA fiduciary standards because they represent business choices rather than management of plan assets.

Fiduciary functions begin once sponsors implement those business decisions. Selecting and monitoring investment options, ensuring reasonable fees, choosing service providers, and overseeing plan compliance all fall under fiduciary duties where sponsors must act solely in participants’ best interests.

Plan sponsors typically make these strategic decisions:

The types and structure of employee contributions allowed (traditional pre-tax, Roth after-tax, or both). Whether to offer employer matching contributions and at what percentage. Investment menu composition—selecting which mutual funds, target-date funds, or other options participants can choose from. Vesting schedules determining when employees own employer contributions. Plan features like loans, hardship withdrawals, and automatic enrollment.

According to Bureau of Labor Statistics data, 73% of civilian workers had access to retirement benefits as of March 2023, with 71.5 million workers having access to 401(k) plans specifically.

Quick Facts: Plan Sponsor Statistics

52% of private industry workers participated in employer retirement plans in 2022
84% of 401(k) plans have fewer than 100 participants, though these small plans hold only 13% of total 401(k) assets (ICI 401(k) Database)
$148,153 average 401(k) balance as of year-end 2024 (up 10% from 2023, per Fidelity Q4 2024 Retirement Analysis)
61% of plans now use automatic enrollment to boost participation
17% of plans have outsourced sponsor responsibilities to reduce fiduciary liability (up from 13% in 2017, PSCA Survey data)

What Is a 401(k) Plan Administrator?

The plan administrator manages daily operations and holds central responsibility for executing the plan according to its written terms. Under 29 CFR § 2510.3-16, “the person specifically so designated by the terms of the instrument under which the plan is operated” serves as administrator. If no one is designated, the plan sponsor automatically becomes the plan administrator by default.

The DOL confirms that the ERISA plan administrator role always carries fiduciary status based on the nature and scope of responsibilities. Administrators don’t make strategic decisions about plan design—instead, they implement the framework established by sponsors.

Plan administrators handle these operational responsibilities:

Enrolling new employees when they become eligible. Processing employee salary deferrals and ensuring timely deposit to participant accounts. Managing distributions, loans, and hardship withdrawals according to plan rules. Maintaining accurate recordkeeping for all participant accounts and transactions. Preparing and filing Form 5500 annual reports with the IRS and DOL. Distributing Summary Plan Descriptions (SPDs) and Summary Annual Reports (SARs) to participants. Responding to participant questions about account balances, investment options, and distribution rules.

A manufacturing company with 150 employees might designate its CFO as the plan administrator. The CFO would sign Form 5500, ensure contributions are deposited within seven business days (the safe harbor deadline for plans under 100 participants), provide required participant disclosures, and coordinate with the recordkeeper to process loans and distributions—all while the CEO and board retain plan sponsor authority over investment menu changes and plan amendments.

What Are the Legal Responsibilities of Plan Sponsors Under ERISA?

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ERISA Section 404(a) establishes fiduciary standards requiring plan sponsors to act solely in participants’ interests with the exclusive purpose of providing benefits. The DOL’s publication “Meeting Your Fiduciary Responsibilities” outlines these core obligations:

The prudent expert standard: Fiduciaries must act “with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use.” This means sponsors can’t simply pick investments casually—they must conduct thorough due diligence, document decision-making processes, and benchmark options against industry standards.

Diversification: Plan sponsors must diversify plan investments to minimize risk of large losses unless clearly prudent not to do so under the circumstances.

Follow plan documents: Sponsors must operate the plan according to its written terms, provided those terms comply with ERISA. A plan document stating employer contributions vest after three years but operating as if they vest immediately creates both a compliance problem and potential participant lawsuits.

Pay only reasonable expenses: All fees paid from plan assets must be reasonable for services rendered. The 2020 BrightScope/ICI study found average large 401(k) plans achieved total costs of just 0.34% of assets (asset-weighted), while smaller plans averaged 1.09-1.71%. Plan sponsors must regularly benchmark fees and negotiate with providers—or risk excessive fee litigation.

Monitor service providers: Selecting a quality third-party administrator or investment advisor doesn’t eliminate sponsor responsibilities. Fiduciaries must continuously monitor provider performance, review fee structures annually, and replace providers who no longer serve participants’ best interests.

ERISA Section 406 prohibits specific transactions with “parties in interest”—the employer, plan fiduciaries, service providers, and their family members. Prohibited transactions include:

Sale, exchange, or lease of property between the plan and parties in interest. Lending money between the plan and parties in interest (except participant loans under safe harbor rules). Furnishing goods or services between plan and parties in interest (except when necessary for plan operations at reasonable compensation under Section 408(b)(1) exemption). Any fiduciary dealing with plan assets for personal benefit or receiving consideration from parties doing business with the plan.

The DOL restored $1.4 billion to employee benefit plans in fiscal year 2023, primarily from self-reported administrative errors. Most violations involved late deposit of employee contributions (which constitutes a prohibited loan to the employer), embezzlement, and excessive fees.

Quick Facts: Fiduciary Liability

Fiduciaries personally liable to restore all losses to the plan from breaches
20% penalty of amounts recovered in DOL enforcement actions
15% excise tax on prohibited transactions, plus 100% if not corrected
$2,670 per day penalty for failure to file Form 5500 (2024 inflation-adjusted amount)
$2,112 per day penalty for failure to provide SPD or SAR

What Daily Operations Do Plan Administrators Handle?

Plan administrators function as the operational backbone of 401(k) plans, executing the strategic framework established by sponsors. Their responsibilities divide into four core categories:

Participant services: Administrators provide day-to-day communication, answering questions about account balances, investment options, distribution eligibility, and loan provisions. They coordinate with recordkeepers to ensure participants can access accounts online, review quarterly statements, and update beneficiary designations. When employees request hardship withdrawals for medical expenses or home purchases, administrators verify eligibility under plan terms and IRS regulations.

Contribution management: Every pay period, administrators coordinate with payroll to process employee deferrals, employer matching contributions, and profit-sharing allocations. For plans with fewer than 100 participants, the DOL’s seven-business-day safe harbor provides certainty—contributions deposited within seven business days of withholding are deemed timely. Larger plans must deposit “as soon as can reasonably be segregated” from general company assets, typically within 2-3 business days.

A technology startup with 85 employees processes bi-weekly payroll every other Friday. If the administrator deposits employee 401(k) contributions by the following Tuesday (within seven business days), the deposit is timely under the safe harbor. Depositing contributions three weeks later could trigger prohibited transaction penalties and require correction through the DOL’s Voluntary Fiduciary Correction Program.

Compliance and reporting: Administrators prepare and file Form 5500 annual reports, due by the last day of the seventh month after plan year-end (July 31 for calendar year plans). The 2024 instructions updated penalty amounts: plans that miss deadlines face $2,670 per day in penalties. Plans can request a 2½-month extension using Form 5558.

Administrators must provide participants with Summary Plan Descriptions within 90 days of becoming a participant, Summary Annual Reports within nine months after plan year-end, and quarterly benefit statements showing account balances and fees charged. Under 29 CFR 2550.404a-5, participant fee disclosures must include total annual operating expenses for each investment option, benchmark index comparisons, and historical returns for 1-, 5-, and 10-year periods.

Testing and nondiscrimination: Annual compliance testing ensures 401(k) plans don’t disproportionately benefit highly compensated employees (HCEs). For 2025, the HCE threshold increased to $160,000 in prior-year compensation. Administrators perform Actual Deferral Percentage (ADP) and Actual Contribution Percentage (ACP) tests, comparing contribution rates between HCEs and non-highly compensated employees. Plans failing these tests must make corrective distributions or Qualified Nonelective Contributions (QNECs) to bring them into compliance.

Safe harbor 401(k) plans avoid most testing by providing minimum employer contributions—either a 3% nonelective contribution to all eligible employees or a dollar-for-dollar match on the first 3% of deferrals plus 50 cents per dollar on the next 2%. Safe harbor plans must provide annual notices to participants at least 30 days before the plan year begins.

Can a Company Serve as Both Sponsor and Administrator?

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Yes—and this represents the most common governance structure. Under ERISA’s default rules, when plan documents don’t specifically designate an administrator, the plan sponsor automatically serves both roles.

In single-employer plans, roughly 83% of employers serve as both sponsor and administrator, handling strategic decisions alongside daily operations. A small business owner with 15 employees might fill both roles personally—choosing the investment menu, setting the match formula, enrolling new hires, processing distributions, and filing Form 5500.

This dual-role arrangement works effectively for small plans with simple designs but creates challenges as companies grow. The employer bears complete fiduciary liability for both strategic and operational decisions. HR staff must maintain expertise in ERISA compliance, investment monitoring, and recordkeeping. Any operational errors—late contributions, missed employee enrollments, incorrect benefit calculations—expose the company to penalties and potential lawsuits.

When serving dual roles, employers should clearly document which committee or individual has authority for different decisions. Many establish separate committees: an Investment Committee with fiduciary responsibility for selecting and monitoring investment options, and an Administrative Committee handling operational tasks and participant communications. This structure, outlined in the plan document, allows specialized oversight without completely outsourcing fiduciary roles.

The plan document governs everything. If it designates the “Chief Financial Officer” as administrator, that specific individual holds legal responsibility for Form 5500 signatures, participant disclosures, and operational compliance—even if they delegate tasks to HR staff or external providers. Sponsors should review plan documents carefully and update designations when key personnel change.

How Do Third-Party Administrators Fit Into 401(k) Governance?

Third-party administrators (TPAs) are service providers hired to assist with plan administration—but they rarely serve as ERISA Section 3(16) plan administrators themselves. This critical distinction confuses many plan sponsors.

Standard TPA services: Most TPAs function as non-fiduciary service providers under ERISA Section 408(b)(2), handling specialized tasks like preparing plan documents and amendments, performing annual nondiscrimination testing (ADP, ACP, top-heavy tests), preparing Form 5500 filings, providing employee enrollment materials, and reconciling recordkeeper data with payroll records. The employer retains fiduciary status as the Section 3(16) administrator and signs all government forms.

A construction company with 200 employees hires a TPA to prepare Form 5500, perform annual compliance testing, and draft plan amendments for SECURE 2.0 Act requirements. The company’s CFO, designated as plan administrator in the plan document, reviews the TPA’s work, signs Form 5500, and bears fiduciary responsibility for accuracy. If the TPA miscalculates testing or files forms late, the CFO faces penalties—not the TPA, unless their contract specifically accepts fiduciary liability.

3(16) fiduciary administrators: Some TPAs offer to serve as ERISA Section 3(16) plan administrators, assuming the title, duties, and legal liability. These arrangements transfer significant responsibility: the 3(16) administrator signs government forms, holds fiduciary status for operational decisions, assumes liability for missed deadlines or compliance errors, and typically costs more than standard TPA services.

Even with a 3(16) administrator, plan sponsors retain duties. Sponsors must prudently select the 3(16) provider, monitoring their qualifications, performance, and financial stability. Sponsors cannot delegate strategic decisions—selecting investment options, choosing providers, amending plan design—which remain sponsor responsibilities. And sponsors must ensure the 3(16) administrator has adequate errors and omissions insurance and fidelity bonding.

Bundled versus unbundled services: Bundled providers (like Vanguard, Fidelity, or Empower) offer recordkeeping, TPA services, and investment options in a single package. This simplifies vendor management but may limit investment flexibility. Unbundled arrangements use separate recordkeepers and TPAs, providing more customization but requiring closer coordination. Neither structure inherently reduces fiduciary liability—sponsors must actively monitor all service providers regardless of bundling.

The Plan Sponsor Council of America’s 67th Annual Survey found 86.9% of eligible employees made salary deferrals in 2023, up from 85.6% in 2022, suggesting well-administered plans drive participation. Average participant contributions reached 7.8% of pay, combined with 4.9% employer contributions, approaching the 12-15% total savings rate most advisors recommend.

Who Bears Fiduciary Liability for Plan Decisions?

ERISA establishes a functional approach to fiduciary status: “fiduciary status is based on the functions performed for the plan, not just a person’s title.” Anyone exercising discretionary authority over plan management or assets becomes a functional fiduciary under ERISA Section 3(21)(A), regardless of whether formally designated.

Named fiduciaries: Plan documents should identify at least one named fiduciary under ERISA Section 402(a)—the person or committee with authority to control plan operations. This named fiduciary has ultimate responsibility for selecting, evaluating, and monitoring all other fiduciaries and service providers. If no named fiduciary is designated, the plan sponsor serves this role by default.

Functional fiduciaries: Corporate officers who select investment options become functional fiduciaries. Investment advisors who recommend specific funds exercise discretionary authority. Even HR managers making eligibility determinations under plan terms may have limited fiduciary status for those specific decisions. Functional fiduciary status brings ERISA liability whether or not the person intended to become a fiduciary.

Co-fiduciary liability: ERISA Section 405 holds fiduciaries liable for breaches by co-fiduciaries if they knowingly participate in the breach, fail to make reasonable efforts to prevent the breach when aware of it, or conceal a known breach. This means investment committee members can’t ignore excessive fees simply because they didn’t personally negotiate the contract—if they know fees are unreasonable and fail to act, they share liability.

3(21) versus 3(38) investment fiduciaries: This distinction determines liability allocation for investment decisions:

A Section 3(21) investment advisor provides recommendations and advice but the plan sponsor retains final decision-making authority. Both parties share fiduciary liability for investment selections. If the 3(21) advisor recommends a poorly performing fund and the sponsor accepts that recommendation, both face potential liability.

A Section 3(38) investment manager has full discretionary authority to select, monitor, and replace investments without sponsor approval. The 3(38) manager must be a registered investment adviser (RIA), bank, or insurance company. Plan sponsors who delegate to 3(38) managers retain only the duty to prudently select and monitor the manager itself—they aren’t liable for the manager’s specific investment selections, provided the selection and monitoring process was prudent.

The DOL’s 2024 Retirement Security Rule expanded when financial service providers become fiduciaries by recommending rollovers, distributions, or investment changes. Advisors who acknowledge fiduciary status in writing automatically become ERISA fiduciaries. This rule, effective September 23, 2024, subjects more recommendations to prohibited transaction rules and requires compliance with updated exemptions PTE 2020-02 and PTE 84-24.

Recent litigation demonstrates fiduciary liability’s scope. In Hughes v. Northwestern University (2022), the Supreme Court reiterated that excessive fee claims must satisfy pleading standards but turn on context-specific circumstances—courts evaluate whether fiduciaries acted prudently given the information available when making decisions. The 2024 Perez-Cruet v. Qualcomm case found potential breach of loyalty when sponsors used forfeitures to offset employer contributions rather than reduce participant fees, though the Hutchins v. HP Inc. court dismissed similar claims, reasoning plan terms didn’t require sponsors to pay administrative costs from forfeiture accounts.

These conflicting decisions highlight ongoing uncertainty about what constitutes fiduciary versus settlor functions. The DOL’s July 2025 amicus brief took a fiduciary-friendly position, arguing that “funding is inherently a settlor function, not a fiduciary function,” and allocating forfeitures to fund employer contributions shouldn’t give rise to breach claims.

What Compliance Requirements Must Both Roles Meet?

Plan sponsors and administrators share responsibility for compliance with ERISA’s reporting, disclosure, and operational requirements, though specific tasks often fall more heavily on one role.

Annual reporting to government agencies

Form 5500: Plans with 100 or more participants must file Form 5500 with financial statements and, if required, an independent audit. Plans with fewer than 100 participants can file Form 5500-SF (short form). The plan administrator signs Form 5500, making them legally responsible for accuracy.

Filing deadlines fall on the last day of the seventh month after plan year-end—July 31, 2025 for calendar year 2024 plans. Form 5558 provides a 2½-month extension to October 15. The IRS and DOL assess penalties for late filing: $2,670 per day from the DOL, with additional IRS penalties. The Delinquent Filer Voluntary Compliance Program (DFVCP) reduces penalties for voluntary corrections made before DOL initiates an investigation—small plans pay $750 per year of delinquency, large plans pay $2,000 per year.

Form 8955-SSA: Plans must report separated participants with deferred vested benefits using Form 8955-SSA, filed with Form 5500. This helps the IRS and Social Security Administration track retirement benefits.

Participant disclosures and notices

Summary Plan Description (SPD): The SPD explains plan features in plain language—eligibility, contributions, vesting, investments, distributions, and ERISA rights. Administrators must provide SPDs to new participants within 90 days of enrollment and redistribute every five years if the plan was amended or every 10 years if unchanged. The SPD must be written for average participants, avoiding technical jargon.

Summary Annual Report (SAR): Within nine months after plan year-end (or two months after the Form 5500 filing deadline with extensions), administrators must provide participants a narrative summary of Form 5500 financial information in the format specified by 29 CFR 2520.104b-10(d).

Quarterly benefit statements: Participant-directed 401(k) plans must provide statements at least quarterly showing account balances, contributions, investment performance, and fees charged. Under ERISA Section 404(c) safe harbor rules, plans must disclose total annual operating expenses as both a percentage and dollar amount per $1,000 invested for each investment option.

Fee disclosures: Initial participant disclosures before first investment directions explain how the plan works, identify investment options and managers, describe fee structures, and provide contact information. Annual comparative charts present investment options side-by-side with performance data (1-, 5-, and 10-year returns), benchmark comparisons, and expense ratios. Quarterly disclosures show actual fees deducted from individual accounts during the quarter.

The DOL’s participant disclosure regulation (29 CFR 2550.404a-5) aims to ensure participants can make informed decisions by providing standardized, comparable information. Plans using reasonable, good-faith efforts to comply with disclosure rules aren’t liable for inadvertent errors from service providers.

ERISA Section 404(c) compliance

Plans seeking protection from liability for participant investment decisions must satisfy ERISA Section 404(c) requirements:

Offer at least three diversified investment alternatives with materially different risk/return characteristics that together allow participants to construct appropriately diversified portfolios. Provide participants the opportunity to give investment instructions at least quarterly (more frequently for volatile investments). Furnish sufficient information for informed decision-making, including prospectuses, fact sheets, performance data, and fee information.

Section 404(c) protection is limited—it shields fiduciaries from liability for participants’ choices among offered investments but not from liability for selecting imprudent investment options in the first place. If a plan offers a poorly performing fund with excessive fees, sponsors remain liable even if participants voluntarily chose that fund.

Cybersecurity requirements

The DOL’s 2024 Compliance Assistance Release 2024-01 confirmed that 2021 cybersecurity guidance applies to all ERISA plans, not just retirement plans. Plan sponsors and administrators must:

Select service providers with strong cybersecurity practices by reviewing information security standards, assessing annual audit results, verifying cybersecurity insurance coverage, and examining their track record with security incidents. Implement cybersecurity program best practices including conducting annual risk assessments, establishing access controls and authentication procedures, encrypting sensitive data, developing incident response plans, and providing cybersecurity training to employees.

The PSCA’s 67th Annual Survey found 31% of plans now have written cybersecurity policies, up from 22% three years ago, and 72% use multifactor authentication, up from 67%. As cybersecurity threats increase, both sponsors and administrators must treat data protection as a fiduciary duty—participant personal information and account data require the same prudent protection as plan assets.

Correction programs for operational failures

The IRS’s Employee Plans Compliance Resolution System (EPCRS) provides three correction methods:

Self-Correction Program (SCP): Plans with good compliance history can self-correct certain operational failures without IRS involvement or fees, provided corrections occur within two years (or, for insignificant failures, by the next audit). Voluntary Correction Program (VCP): For failures ineligible for self-correction, plans can submit to the IRS with fees ranging from $1,500 to $3,500 based on plan assets, receiving formal approval and protection from penalties. Audit Closing Agreement Program: If the IRS identifies issues during an audit, plans can correct under closing agreements with negotiated sanctions, typically more costly than voluntary correction.

The DOL’s Voluntary Fiduciary Correction Program (VFCP) addresses 19 specific prohibited transactions, including late deposit of participant contributions—the most common fiduciary violation. Plans that self-correct through VFCP calculate lost earnings using DOL’s online calculator, restore those amounts to participant accounts, and receive immediate relief from excise taxes under Internal Revenue Code Section 4975.

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How Have SECURE 2.0 Changes Affected Governance Responsibilities?

The SECURE 2.0 Act, signed December 29, 2022, continues reshaping 401(k) governance with provisions taking effect through 2025. Plan sponsors and administrators must understand these changes to maintain compliance and communicate effectively with participants.

2025 contribution limit increases

IRS Notice 2024-80 announced 2025 limits effective January 1:

Employee deferrals: $23,500 for participants under age 50 (increased from $23,000 in 2024). Standard catch-up: $7,500 for participants age 50+ (unchanged from 2024). Super catch-up: $11,250 for participants ages 60-63 (new in 2025 under SECURE 2.0 Section 109), allowing total contributions of $34,750. Total annual limit: $70,000 combining employee deferrals, employer contributions, and forfeitures (under age 50); $77,500 (ages 50-59 and 64+); $81,250 (ages 60-63).

The enhanced catch-up for ages 60-63 is optional—plan sponsors must amend plan documents to adopt this feature. Participants who turn 60, 61, 62, or 63 during the calendar year qualify. At age 64, participants revert to the standard $7,500 catch-up amount.

The highly compensated employee threshold for nondiscrimination testing increased to $160,000 for 2025 (from $155,000 in 2024). This means more employees may fall below HCE status, potentially affecting ADP/ACP test results.

Mandatory Roth catch-up contributions for high earners

SECURE 2.0 Section 603 requires employees with prior-year FICA wages exceeding $145,000 to make catch-up contributions as Roth (after-tax) only, effective January 1, 2026. The IRS issued final regulations on September 15, 2025 (IR-2025-91) clarifying implementation.

Who is affected: Employees whose FICA wages (Box 3 on Form W-2) from the employer sponsoring the plan exceeded $145,000 in the prior year. Self-employed individuals and partners without FICA wages are exempt. Plan sponsor decisions: If any participant is subject to the Roth requirement, the plan must allow all catch-up-eligible participants to make Roth contributions—even if the plan previously didn’t offer Roth options. Plans must either add a Roth feature or eliminate catch-up contributions for high earners. Timeline: The IRS provided transition relief through December 31, 2025 via Notice 2023-62. Mandatory compliance begins January 1, 2026, though final regulations technically take effect January 1, 2027. Plans can use “reasonable, good faith interpretation” until 2027.

This change creates administrative complexity. Sponsors must track prior-year FICA wages for all participants, coordinate with payroll systems to redirect catch-up contributions to Roth accounts for high earners, establish Roth accounts if not previously offered, and communicate tax implications to affected participants.

A hospital system with 800 employees currently offers only traditional pre-tax contributions. Under the new rule, the system must add Roth accounts by January 1, 2026, modify payroll systems to identify employees who earned more than $145,000 in 2025, and automatically redirect their catch-up contributions to Roth accounts. The system must notify these employees that their 2026 catch-up contributions will be after-tax (increasing current taxable income but providing tax-free growth).

Automatic enrollment requirements

IRS proposed regulations issued January 10, 2025 (IR-2025-07) implement SECURE 2.0’s automatic enrollment mandate for new 401(k) and 403(b) plans established after December 29, 2022.

Requirements: Automatic enrollment at minimum 3% of pay, with automatic annual increases of 1 percentage point per year until reaching at least 10% of pay. Exemptions: New businesses (in existence less than three years), businesses with 10 or fewer employees, church plans, and governmental plans. Effective date: Plan years beginning more than six months after final regulations are published.

Existing plans are grandfathered—this requirement applies only to newly established plans. However, automatic enrollment has become an industry best practice even for plans not legally required to adopt it.

Vanguard’s “How America Saves 2025” report found 61% of plans now use automatic enrollment, with 78% of large plans (1,000+ participants) adopting this feature. Auto-enrolled participants show higher participation rates and better savings discipline—plans with auto-enrollment achieve 12.3% average savings rates versus 7.4% for voluntary enrollment.

RMD age increases and Roth 401(k) exemptions

SECURE 2.0 raised required minimum distribution ages and eliminated RMDs from designated Roth accounts:

RMD ages: Participants born 1951-1959 must begin RMDs at age 73. Participants born 1960 or later must begin RMDs at age 75 (effective 2033). First RMDs are due by April 1 of the year following the year you reach the applicable age, with subsequent RMDs due by December 31 annually.

Roth 401(k) RMD elimination: Starting in 2024, designated Roth accounts in 401(k) and 403(b) plans are exempt from RMDs during the participant’s lifetime, creating parity with Roth IRAs. Previously, Roth 401(k)s required RMDs even though Roth IRAs didn’t. Participants can now leave Roth 401(k) assets untouched during their lifetime for estate planning purposes.

Reduced RMD penalties: The excise tax for missed RMDs decreased from 50% to 25% of the amount not withdrawn, with further reduction to 10% if corrected within two years.

These changes simplify retirement planning for participants but require administrator updates to distribution systems and participant communications about new RMD rules.

Other SECURE 2.0 provisions affecting governance

Employer Roth matching: Plans can now allow employees to designate employer matching and nonelective contributions as Roth (effective for contributions after December 29, 2022). These Roth matches are included in the employee’s taxable income when allocated.

Qualified birth or adoption distributions: The PSCA survey found 52.3% of plans adopted QBAD provisions allowing up to $5,000 in penalty-free withdrawals (if under age 59½) for qualified birth or adoption expenses, repayable within three years.

Emergency savings accounts: SECURE 2.0 permits plan sponsors to establish pension-linked emergency savings accounts (PLESAs) for non-highly compensated employees, capped at $2,500 or lower plan-specified amount. This optional feature helps participants build emergency funds without threatening 401(k) savings.

Student loan matching: Plans can treat qualified student loan payments as elective deferrals for employer matching purposes. Only 2% of plans have adopted this feature per PSCA data, but adoption may increase as sponsors recognize its value for recruiting younger employees.

Plan sponsors face December 31, 2026 deadlines to adopt plan amendments for most SECURE 2.0 provisions under the IRS’s remedial amendment period. Administrators must communicate changes to participants and update enrollment materials, SPDs, and investment education content.

What Governance Model Works Best for Different Company Sizes?

The optimal 401(k) governance structure balances control, expertise, cost, and liability based on plan size, complexity, and internal capabilities.

In-house administration: retaining complete control

Best for: Small to mid-sized companies (10-200 employees) with dedicated HR or benefits staff who have ERISA expertise or commit to developing it.

Structure: The employer serves as both plan sponsor and Section 3(16) administrator. HR staff or an internal committee handles enrollment, contribution processing, participant communications, Form 5500 filing, and compliance testing. The company may hire a recordkeeper for technology platforms but retains fiduciary responsibility for all decisions.

Advantages: Greater control over plan operations and participant relationships. Direct communication with employees about retirement benefits. Lower external service costs compared to outsourced models. Immediate response capability for participant issues or plan changes. Flexibility to customize processes and timelines.

Disadvantages: Requires significant internal ERISA expertise and ongoing education about regulatory changes. Full fiduciary liability retained by the company and designated individuals. Time-intensive for HR staff, potentially diverting attention from core HR functions. Risk of compliance errors without specialized knowledge. May need to maintain professional certifications like Certified Plan Sponsor Professional (CPSP).

A dental practice with 35 employees might choose in-house administration because the office manager has financial background and completes the CPSP certification. The manager enrolls new hygienists and dental assistants, coordinates with the payroll company to process deferrals, reviews quarterly statements from the recordkeeper, and files Form 5500-SF annually. Total external costs run about $3,000 annually for recordkeeping and $1,500 for annual compliance consulting, well below typical TPA fees of $8,000-12,000. However, the office manager spends 10-15 hours monthly on 401(k) administration.

Fully outsourced administration: transferring operational liability

Best for: Companies of any size seeking to minimize fiduciary liability and administrative burden, particularly those without internal ERISA expertise or facing high compliance risks.

Structure: A third-party firm serves as the ERISA Section 3(16) fiduciary plan administrator, assuming legal responsibility for operational decisions, government filings, and compliance. The company may also engage a Section 3(38) investment manager for complete delegation of investment selection and monitoring. The highest level of outsourcing uses a “402(a) named fiduciary” taking ultimate responsibility for plan governance.

Advantages: Significant reduction in fiduciary liability through transfer to specialized firms. Access to deep ERISA expertise and dedicated compliance resources. Administrative efficiency through established processes and technology. Reduced HR time commitment allowing focus on strategic initiatives. Professional management of complex compliance requirements including testing, audits, and corrections. Typically includes errors and omissions insurance and substantial bonding for protection.

Disadvantages: Higher service costs, typically $10,000-50,000+ annually depending on plan size. Less direct control over daily operations and participant interactions. Potential conflicts of interest if provider has financial incentives for specific investments. Plan sponsors retain responsibility for prudent selection and ongoing monitoring of outsourced providers. Service quality varies significantly among providers, requiring careful due diligence.

Callan Institute’s 2022 Defined Contribution Trends Survey found 17% of plans had outsourced to total retirement outsourcing (TRO) solutions in 2022, up from 13% in 2017. Primary drivers included reducing costs, improving efficiency, and freeing internal resources for strategic work.

A regional bank with 450 employees might fully outsource to reduce compliance risks in a highly regulated industry. The bank engages a 3(16) administrator charging $28,000 annually to handle all operational duties plus a 3(38) investment manager charging 0.15% of plan assets ($67,500 on $45 million in plan assets) to manage the investment menu. Total external costs of $95,500 exceed in-house administration but the bank eliminates most fiduciary exposure. The Chief HR Officer spends just 3-4 hours quarterly reviewing provider scorecards and attending fiduciary committee meetings, versus 15-20 hours monthly for in-house administration.

Hybrid models: balancing control and expertise

Best for: Mid-sized to large companies (200-2,000 employees) wanting targeted liability reduction while maintaining control over strategic decisions.

Structure: The employer retains the Section 3(16) administrator role but outsources operational tasks to a non-fiduciary TPA. The company might engage a Section 3(21) co-fiduciary investment advisor who provides recommendations but allows the sponsor final decision authority, or use a 3(38) investment manager for complete investment delegation while handling administrative duties internally.

Advantages: Balanced approach combining internal control with external expertise. Cost-effective for mid-sized plans, typically $6,000-20,000 annually for TPA services. Flexibility to adjust fiduciary delegation as needs evolve. Targeted liability reduction for high-risk areas like investments. Maintains direct participant relationships through internal HR team.

Disadvantages: Complex coordination between internal staff and external providers. Shared liability requires clear documentation of roles and responsibilities through service agreements. Potential gaps where each party assumes the other is handling specific tasks. Ongoing monitoring requirements remain for the plan sponsor regarding TPA and advisor performance. HR staff needs moderate ERISA knowledge even with TPA support.

A manufacturing company with 650 employees adopts a hybrid model by hiring a TPA for $14,000 annually to perform compliance testing, prepare Form 5500, draft plan amendments, and provide annual fiduciary training to the internal benefits committee. The company retains the 3(16) administrator role and hires a 3(38) investment manager charging 0.20% of plan assets to select and monitor investments. This structure costs approximately $80,000 annually ($14,000 TPA + $66,000 investment manager on $33 million in assets) but eliminates investment fiduciary liability while maintaining administrative control.

Comparison table: governance models

Criteria	In-House Administration	Hybrid Model	Fully Outsourced
Fiduciary Liability	Company retains 100% of liability	Shared/partial depending on delegation	Significantly reduced through transfer
Internal Resource Commitment	High (10-20 hrs/month)	Moderate (5-10 hrs/month)	Low (2-5 hrs/month)
Annual Cost (500-employee plan)	$5,000-15,000	$20,000-40,000	$40,000-100,000+
ERISA Expertise Required	High internal expertise needed	Moderate expertise required	Minimal expertise needed
Control Over Operations	Complete control	Balanced control	Limited direct control
Compliance Risk	Higher risk without expertise	Moderate risk with proper coordination	Lower risk with quality providers
Best for Company Size	10-200 employees	200-2,000 employees	Any size, especially 500+

Decision factors beyond size

Several factors beyond employee count influence optimal governance structure:

Industry regulatory environment: Heavily regulated industries (banking, healthcare, government contractors) face greater scrutiny and may benefit from outsourced expertise.

Plan complexity: Plans offering loans, Roth accounts, after-tax contributions, employer stock, and multiple contribution formulas require more sophisticated administration.

Geographic distribution: Multi-state companies face varying state laws regarding unclaimed property, payroll regulations, and legal process, complicating administration.

Internal turnover: High HR turnover disrupts continuity for in-house models; outsourced administration provides stability.

Litigation sensitivity: Companies in litigation-prone industries or with contentious employee relations may prefer outsourced fiduciary liability.

Growth trajectory: Fast-growing companies should consider scalable solutions rather than repeatedly changing structures.

Plan Sponsor versus Plan Administrator: responsibilities at a glance

Responsibility	Plan Sponsor	Plan Administrator	Typically Performed By
Establishing the plan	✓ (Settlor function)		Employer/Board
Plan design decisions	✓ (Settlor function)		Employer/Board
Selecting investment menu	✓ (Fiduciary function)		Investment Committee
Monitoring investment performance	✓ (Fiduciary function)	May assist	Investment Committee
Choosing service providers	✓ (Fiduciary function)	May recommend	Benefits Committee
Ensuring reasonable fees	✓ (Fiduciary function)	May assist with benchmarking	Investment/Benefits Committee
Enrolling new employees		✓	HR Department or TPA
Processing contributions	Funds the contributions	✓ Ensures timely deposit	Payroll/HR or TPA
Preparing Form 5500	May review	✓ Signs and files	Administrator or TPA
Distributing SPD and SAR		✓	HR Department or TPA
Participant fee disclosures		✓	Recordkeeper (at Admin direction)
Benefit statements		✓	Recordkeeper (at Admin direction)
Processing distributions		✓	Recordkeeper and TPA
Administering loans		✓	Recordkeeper and TPA
Compliance testing	Reviews results	✓ Performs testing	TPA or Internal Benefits Team
Plan amendments	✓ Approves	✓ Implements	Legal counsel drafts, TPA assists
Claims and appeals		✓	Administrator or Designated Committee
Correcting operational errors	May approve	✓ Identifies and corrects	Administrator and TPA

Image by Saftladen from Pixabay

What to Do Next

Whether you’re a plan participant trying to understand who handles different aspects of your 401(k) or a business owner establishing governance structure, these actionable steps clarify roles and responsibilities:

For plan participants: Review your Summary Plan Description to identify who serves as plan administrator—this is the person or entity you contact for enrollment questions, distribution requests, loan applications, and beneficiary updates. Look for the administrator’s name and contact information on page one or two of the SPD. If you have questions about investment options or plan design (like whether the company will add Roth options), direct those to your HR leadership or benefits committee, as those are sponsor-level decisions.

For small business owners (fewer than 100 employees): Determine whether you have the internal expertise and time commitment to serve as both sponsor and administrator. If yes, establish a clear governance process—document investment decisions, benchmark fees annually, maintain a fiduciary file with meeting minutes, and schedule quarterly plan reviews. If no, investigate hybrid models where you retain strategic control but outsource compliance-intensive tasks like Form 5500 preparation and nondiscrimination testing to a TPA. Budget $5,000-15,000 annually for quality TPA services.

For mid-sized companies (100-500 employees): Formalize your governance structure by creating written investment and administrative committee charters that clearly delineate responsibilities. Designate named fiduciaries in your plan document for each committee. Consider engaging a 3(21) investment co-fiduciary to share liability for investment selection while maintaining final decision authority. Conduct annual fiduciary training for all committee members covering ERISA duties, prohibited transactions, and current compliance requirements. Budget $20,000-40,000 annually for combined TPA and advisory services.

For large companies (500+ employees): Evaluate whether full outsourcing through 3(16) administrators and 3(38) investment managers justifies the cost through liability reduction and operational efficiency. Conduct formal RFPs every 3-5 years for all service providers, including recordkeepers, TPAs, and investment advisors, benchmarking fees against industry standards. Implement robust cybersecurity protocols including annual penetration testing, multifactor authentication, and encrypted data transmission. Ensure your fiduciary liability insurance coverage matches plan size, typically $5-10 million or more for plans with $50+ million in assets.

For all plan sponsors: Review your plan document to confirm it accurately reflects current operations and designates the correct administrator. Update the document if key personnel have changed. Prepare now for SECURE 2.0 implementation, particularly the mandatory Roth catch-up requirement effective January 1, 2026—decide whether to add Roth features or eliminate catch-up for high earners. Determine whether you’ll adopt the optional super catch-up ($11,250) for ages 60-63. Document all fiduciary decisions in meeting minutes, including investment reviews, fee benchmarking, and service provider monitoring.

Frequently Asked Questions

What is a 401(k) plan sponsor?

The plan sponsor is the employer or organization that establishes and maintains the 401(k) plan for employees. Under ERISA Section 3(16)(B), sponsors hold ultimate authority over plan design, investment selection, and strategic decisions while bearing fiduciary responsibility to act in participants’ best interests.

What is a 401(k) plan administrator?

The plan administrator manages daily operations including enrolling employees, processing contributions, filing government forms, and distributing required notices to participants. Defined under 29 CFR § 2510.3-16 as the person designated in plan documents or, if no one is designated, the plan sponsor by default. The administrator role always carries fiduciary status.

What is the main difference between a plan sponsor and plan administrator?

Plan sponsors make strategic decisions about the plan—what benefits to offer, which investments to include, how to structure employer contributions—while administrators make operational decisions within the plan’s existing framework—how to enroll participants, when to process distributions, how to file government forms. Sponsors design the blueprint; administrators execute it.

Can a plan sponsor also be the plan administrator?

Yes, and this represents the most common arrangement. In roughly 83% of single-employer plans, the employer serves both roles by default under ERISA. Small and mid-sized companies frequently maintain this dual-role structure, with HR staff or benefits committees handling both strategic and operational functions.

Who is legally responsible for 401(k) compliance?

Both sponsors and administrators share compliance responsibility, though specific duties differ. Sponsors must ensure investment options are prudent, fees are reasonable, and service providers are properly selected and monitored. Administrators must file Form 5500 timely, provide required participant disclosures, deposit contributions promptly, and maintain accurate records. Both can face personal liability for compliance failures.

What happens if my company fails to deposit 401(k) contributions on time?

Late deposit of employee contributions constitutes a prohibited transaction under ERISA—essentially an improper loan from the plan to the employer. The DOL requires prompt deposit, with a safe harbor of seven business days for plans with fewer than 100 participants. Late contributions must be corrected through the Voluntary Fiduciary Correction Program by calculating and restoring lost earnings to participant accounts, potentially triggering excise taxes of 15% of the amount at issue.

Do I need to hire a third-party administrator?

Not necessarily. Companies can serve as their own administrator if they have adequate ERISA expertise and resources. However, TPAs provide valuable specialized knowledge for compliance testing, Form 5500 preparation, and plan amendments. Small plans often benefit from TPA services costing $5,000-15,000 annually to reduce compliance risks. Larger or more complex plans almost universally use TPAs or fully outsourced administration.

How much does 401(k) plan administration cost?

Costs vary significantly by plan size and service model. Small plans (under 100 participants) average 1.09-1.71% of plan assets annually in total costs. Medium plans ($10-100 million) typically pay 1.0-1.5% of assets. Large plans (over $100 million) achieve economies of scale with total costs below 1%, averaging just 0.34% on an asset-weighted basis. Recordkeeping typically costs $45-80 per participant annually, with additional charges for TPA services, investment management, and compliance support.

What is a 3(16) fiduciary administrator?

A 3(16) fiduciary administrator is a third-party firm that accepts designation as the ERISA plan administrator, assuming legal responsibility and liability for administrative functions. Unlike standard TPAs who provide non-fiduciary services, 3(16) administrators sign government forms, bear fiduciary status for operational decisions, and maintain errors and omissions insurance covering administrative errors. This arrangement transfers significant liability from the employer to the specialized provider, though sponsors retain responsibility for prudent provider selection and monitoring.

How do I know if I’m a fiduciary?

Under ERISA, anyone who exercises discretionary authority over plan management or assets is a functional fiduciary, regardless of title. If you select investments, choose service providers, determine benefit eligibility, or exercise discretion over plan operations, you’re likely a fiduciary. Named fiduciaries are specifically designated in plan documents. Corporate officers, HR directors, and committee members frequently have fiduciary status for 401(k) decisions even if not formally acknowledged.

What is the difference between 3(21) and 3(38) investment advisors?

A Section 3(21) investment advisor provides recommendations and advice but the plan sponsor retains final decision-making authority, sharing fiduciary liability for investment selections. A Section 3(38) investment manager has full discretionary authority to select, monitor, and replace investments without sponsor approval. The 3(38) must be a registered investment adviser, bank, or insurance company. Plan sponsors who properly delegate to 3(38) managers are liable only for prudent selection and monitoring of the manager, not for specific investment decisions.

Who signs Form 5500?

The plan administrator signs Form 5500. If the plan document designates a specific person (like the CFO or benefits manager) as administrator, that individual must sign. If no administrator is designated, the plan sponsor signs. In outsourced arrangements with 3(16) administrators, the 3(16) fiduciary signs Form 5500, assuming legal responsibility for accuracy and timeliness.

How often must I review 401(k) fees?

ERISA requires ongoing monitoring of plan expenses to ensure fees remain reasonable. Best practice recommends annual fee benchmarking against industry standards, typically comparing total costs to similar-sized plans and reviewing each service provider’s charges. The DOL expects documented fee reviews at least annually, with more frequent monitoring (quarterly or semi-annually) for larger plans or when fee-related issues arise. Investment committee meeting minutes should document fee discussions and conclusions.

About the Author

Sridhar Boppana is transforming how families approach retirement security. Combining deep market expertise with a passion for challenging conventional wisdom, he’s on a mission to empower retirees with strategies that deliver true financial peace of mind.

Professional Credentials & Expertise:

Licensed insurance agent and financial advisor specializing in retirement wealth management and guaranteed lifetime income strategies for pre-retirees and retirees
Research-driven strategist with extensive market analysis expertise in alternative retirement solutions, including annuities, Indexed Universal Life policies, and tax-free income planning
Prolific thought leader with over 530 published articles on retirement planning, Social Security, Medicare, and wealth preservation strategies
Mission-focused advisor committed to helping 100,000 families achieve tax-free income for life by 2040
Expert in protecting retirees from the triple threat of inflation, taxation, and market volatility through strategic financial planning
Advocate for financial empowerment, dedicated to challenging conventional retirement beliefs and expanding options for retirees seeking financial security and peace of mind

When you’re ready to explore guaranteed income strategies tailored to your retirement goals, Sridhar is here to help.

Disclaimer

This article is for educational purposes only and does not constitute financial, legal, tax, or insurance advice. Tax laws change frequently, and individual circumstances vary significantly. Consult with qualified tax professionals, financial advisors, and legal counsel before making decisions about retirement account withdrawals or relocation. The information presented is current as of October 2025 but may not reflect the most recent legislative changes or court rulings affecting retirement account taxation.

Plan sponsors and administrators should consult ERISA attorneys for legal guidance on fiduciary duties and compliance requirements. Individual participants should consult financial advisors regarding personal retirement planning and investment decisions.

Sources & References

Government Sources

U.S. Department of Labor (DOL)

Meeting Your Fiduciary Responsibilities – https://www.dol.gov/sites/dolgov/files/ebsa/about-ebsa/our-activities/resource-center/publications/meeting-your-fiduciary-responsibilities.pdf
Reporting and Disclosure Guide for Employee Benefit Plans – https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/reporting-and-disclosure-guide-for-employee-benefit-plans.pdf
Field Assistance Bulletin No. 2025-01 (Missing Participants) – https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/guidance/field-assistance-bulletins/2025-01.pdf
Field Assistance Bulletin No. 2025-02 (Annual Funding Notices) – https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/2025-02
Compliance Assistance Release No. 2024-01 (Cybersecurity) – https://www.dol.gov/agencies/ebsa/key-topics/retirement-benefits/cybersecurity/compliance-assistance-release-2024-01
Retirement Security Rule – https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/erisa/retirement-security/law-and-regulations
Form 5500 Series – https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500
General Fiduciary Information – https://www.dol.gov/general/topic/retirement/fiduciaryresp

Internal Revenue Service (IRS)

IRS Notice 2024-80 (2025 Cost-of-Living Adjustments) – https://www.irs.gov/pub/irs-drop/n-24-80.pdf
IR-2024-285 (401(k) Limit Increases for 2025) – https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
IR-2025-91 (Final Regulations on Roth Catch-Up) – https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-on-new-roth-catch-up-rule-other-secure-2point0-act-provisions
IR-2025-07 (Proposed Automatic Enrollment Regulations) – https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-new-automatic-enrollment-requirement-for-401k-and-403b-plans
IR-2024-309 (RMD Requirements) – https://www.irs.gov/newsroom/irs-urges-many-retirees-to-make-required-withdrawals-from-retirement-plans-by-year-end-deadline
Plan Sponsor Responsibilities – https://www.irs.gov/retirement-plans/plan-sponsor/a-plan-sponsors-responsibilities
401(k) Plan Fix-It Guide – https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide
Retirement Plan Contribution Limits – https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits

Federal Register & Regulations

29 CFR § 2510.3-16 (Plan Administrator Definition) – https://www.ecfr.gov/current/title-29/subtitle-B/chapter-XXV/subchapter-B/part-2510/section-2510.3-16
Federal Register Final Regulations on Catch-Up Contributions (September 16, 2025) – https://www.federalregister.gov/documents/2025/09/16/2025-17865/catch-up-contributions
29 CFR 2550.404a-5 (Participant Fee Disclosure Regulation)
29 CFR 2520.102-2 and 2520.102-3 (SPD Requirements)
29 CFR 2550.404c-1 (ERISA Section 404(c) Requirements)

Academic & Research Sources

CFP Board of Standards

CFP® Professional Fiduciary Duty – https://www.cfp.net/ethics/compliance-resources/2018/05/focus-on-ethics—cfp-professionals-fiduciary-duty-when-providing-financial-advice

Federal Reserve Bank of New York

Research on 401(k) Participant Behavior – https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr38.pdf

Industry Research Organizations

Employee Benefit Research Institute (EBRI)

EBRI/ICI 401(k) Database – https://www.ebri.org/retirement/401(k)-database
Workplace Retirement Plans: By the Numbers (January 2023) – https://www.ebri.org/docs/default-source/by-the-numbers/ebri_rsrc_facts-and-figures_011923.pdf

Investment Company Institute (ICI)

ICI 401(k) Resource Center – https://www.ici.org/401k
BrightScope/ICI Defined Contribution Plan Profile (2020) – https://www.ici.org/news-release/23-news-brightscope-401k
ICI 401(k) FAQs – https://www.ici.org/faqs/faq/401k/faqs_401k

Plan Sponsor Council of America (PSCA)

PSCA Website – https://www.psca.org/
67th Annual Survey (2023 plan year data)
Plan Sponsor Toolkit – https://www.psca.org/industry-content/resources/plan-sponsor-toolkit/
2025 National Conference Insights – https://www.pnc.com/insights/corporate-institutional/manage-assets/2025-psca-conference-essential-insights-for-plan-sponsors.html

Major Provider Research

Vanguard How America Saves 2025 – https://corporate.vanguard.com/content/corporatesite/us/en/corp/retirement-insights.html
Fidelity Q4 2024 Retirement Analysis – https://www.fidelity.com/about-fidelity/Q3-2024-retirement-analysis

Additional Industry Sources

Human Interest: Plan Administrator and Sponsor Duties – https://humaninterest.com/learn/articles/401k-plan-administrator-and-sponsor-duties/
Newfront: Plan Governance and Plan Sponsor Roles – https://www.newfront.com/blog/401kology-plan-governance-plan-sponsor
Fidelity: Who Is a Fiduciary? – https://sponsor.fidelity.com/pspublic/pca/psw/public/library/manageplans/who_is_a_fiduciary.html
Bureau of Labor Statistics: Employee Benefits Data – https://www.bls.gov/