Seven Practical Steps to Streamline your Retirement Plan Year in 2026
By Chris Cristallo, CFP® | 401(k) Advisor
A new plan year is a clean reset, but it is also when the small operational details start to matter. In our experience, plans that run smoothly often focus on tightening core processes, tracking practical indicators, and making it easier for employees to take the next step.
This post lays out seven actions that may help streamline 2026 operations. Submit the census file early and ensure accuracy, conduct a quick plan health check using practical metrics, make it easier for employees to take action, review automatic features and the match formula, confirm the default investment is appropriate, offer general education on Roth and traditional contributions, and reinforce basics like beneficiaries and account security.
None of these items require a major overhaul. Together, they reduce rework, support a prudent process, and encourage stronger participant habits over time.
1) Submit the Census File Early and Ensure Accuracy
Census work often coincides with other year-end tasks like W-2 preparation, payroll cleanup, vendor requests, and leadership meetings. Delays can affect the overall plan schedule.
Recordkeepers and third-party administrators rely on accurate census data for testing and annual compliance work. A strong census file typically confirms eligibility, entry dates, compensation definitions, terminations, rehires, and ownership changes that affect highly compensated employee determinations.
Common issues include missing hire or birth dates, incorrect rehire dates, incomplete hours for eligibility tracking, and mismatches between payroll totals and plan totals. Assigning one person internally to coordinate the census process can help ensure consistency across payroll, HR, and the recordkeeper.
2) Conduct a Quick Plan Health Check Using Practical Metrics
You do not need a lengthy report to understand plan performance. Focus on a few key metrics and compare them year over year, such as participation rate, average deferral rate, percentage of employees receiving the full match, loan and hardship usage, and how participants are invested.
When these numbers change, they provide a starting point for action. For example, if the average deferral rate has stalled, consider whether a plan design adjustment or improved education cadence could help. If many employees are missing the full match, a clear message with a simple action step may make a difference.
3) Make it easier for employees to take action
Many employees are not avoiding the plan on purpose. They are busy, they get overwhelmed by choices, and they postpone decisions that feel complicated.
Simplifying enrollment and communication can reduce friction.
Consider short, clear messages that prompt one action such as increasing deferrals by 1%, checking beneficiary designations, or confirming investment choices; then repeating that approach throughout the year.
4) Review Automatic Features and the Match Formula
Features like auto enrollment and auto escalation can encourage better savings behavior with minimal effort from participants. If these features are already in place, confirm that default deferral rates and escalation schedules remain appropriate.
Also review match utilization. If employees are not capturing the full match, check whether the formula is easy to understand and whether messaging is clear.
5) Confirm your default investment is appropriate
Many plans rely on a qualified default investment alternative, often a target date series. This may be a strong solution when it fits the participant population and is monitored consistently.
A good check for 2026 is to confirm that the investment philosophy aligns with your workforce, fees are reasonable, and the monitoring process is documented. The goal is to demonstrate a prudent process rather than to chase performance.
6) Offer General Education on Roth and Traditional Contributions
Roth versus traditional deferrals is one of the most frequent questions employees ask, and it can also be one of the easiest topics to overexplain.
Sponsors can be helpful without giving individual tax advice. The key is to provide a simple framework. Employees who expect higher tax rates later may lean Roth. Employees who want a tax break today may lean traditional. Many employees can benefit from a mix over time.
A short New Year campaign that explains the difference in plain language, then points employees to their advisor or tax professional for personal guidance, may reduce confusion and increase engagement.
7) Reinforce Basics Like Beneficiaries and Account Security
Every year there are preventable problems that create stress for families and extra work for sponsors. Beneficiary designations are one of them. A quick reminder early in the year, especially after life events like marriage, divorce, or a new child.
Account security is another. Encourage participants to use strong passwords and multi factor authentication, and make sure you are asking your providers the right questions about cybersecurity controls. This is no longer a niche topic. It is part of running a modern benefit.
Two simple goals for 2026
To keep momentum, pick two measurable goals for the year. For example, increase participation by a specific percentage, raise the average deferral rate by 1 percent, or reduce the number of employees missing the full match.
The most effective plans aren’t complex. They’re the ones that operate seamlessly, communicate with clarity, and empower employees to take confident steps toward a stronger financial future.
Together, let’s evaluate the way we approach retirement programs.
