Spring Into Action: Why May Can Be a Smart Time to Refresh Your 401(k) Plan

By Chris Cristallo, CFP® | BGA 401k 

As the days get longer and businesses begin preparing for summer schedules, May can be a useful time for plan sponsors to step back and evaluate the health of their 401(k) plan. A midyear review gives employers an opportunity to improve participation, strengthen fiduciary oversight, and help employees evaluate whether they are making progress toward their retirement goals before year-end planning begins. 

For many organizations, the second half of the year becomes increasingly busy with budgeting, open enrollment, and operational demands. Taking proactive action now can help avoid rushed decisions later while helping employers address plan design and communication opportunities. 

Here are several areas every plan sponsor should consider reviewing this spring. 

Review Participation and Contribution Rates 

One of the most important indicators of plan health is employee participation. Take a close look at: 

• Overall participation rates  

• Average employee deferral percentages  

• Employees contributing enough to receive the full employer match  

• Participation trends among newer or younger employees  

If participation or savings rates are lower than expected, now may be the right time to increase communication efforts. 

Simple initiatives may help support employee engagement: 

• Educational webinars  

• Reminder emails  

• Enrollment campaigns  

• Highlighting the value of the employer match  

Even small reminders and prompts may encourage higher participation or savings rates over time. 

For plans already using automatic enrollment or auto-escalation, May is also a good time to evaluate whether default contribution rates are still appropriate. Many employers are evaluating whether higher default deferral rates are appropriate for their workforce and plan objectives. 

Benchmark Fees and Investment Options 

Plan fiduciaries generally have responsibilities under ERISA to monitor whether plan fees are reasonable relative to the services provided and to follow a prudent process in selecting and monitoring vendors and investments. 

A spring review should include the evaluation of: 

• Recordkeeping costs  

• Investment management fees  

• Advisor and consulting fees  

• Participant service capabilities  

• Cybersecurity standards  

It is equally important to evaluate the investment lineup itself. 

Ask questions such as: 

“Are funds performing appropriately compared to benchmarks and peers?”

“Are there overlapping or redundant investment options?”

“Do participants have access to diversified and cost-effective choices?”

“Is the target-date fund suite still appropriate for your workforce?”

Documenting these reviews is a critical part of maintaining a prudent fiduciary process under ERISA.

Promote the Employer Match 

Many employees underestimate the value of the company match or fail to contribute enough to receive the full benefit. 

A simple reminder campaign may help support increased engagement. 

Consider sending employees a message like: 

“Are you maximizing your employer match this year?”

That single prompt may encourage participants to increase contributions and take fuller advantage of an important workplace benefit. 

Helping employees understand the long-term impact of compounding and employer contributions may improve awareness of plan features and broader financial planning concepts. 

Review SECURE 2.0 Changes 

The retirement plan landscape continues to evolve as additional SECURE 2.0 provisions take effect. 

Plan sponsors should work closely with advisors, recordkeepers, and payroll providers to stay current on updates such as: 

• Roth treatment for certain catch-up contributions  

• Expanded catch-up contribution limits  

• Student loan matching provisions  

• Automatic enrollment requirements for new plans  

• Increased focus on participant engagement and disclosures  

Midyear can be a useful time to confirm that: 

• Payroll systems are prepared  

• Required plan amendments are being tracked  

• Employees understand how these changes may affect them  

Proactive compliance management may help support smoother administration and timely implementation of applicable plan changes. 

Enhance Financial Wellness Initiatives 

Financial stress continues to affect productivity, morale, and retention in many workplaces. 

Retirement plans may be more effective when paired with broader financial wellness education. 

Consider adding resources such as: 

• On-demand educational content  

• Budgeting and debt management webinars  

• Retirement readiness tools  

• Acccess to financial education resources and, where appropriate, meetings with a financial advisor 

• Guidance on Roth versus Traditional contributions  

Financial education may help employees feel more informed about plan participation and related decisions. 

Encourage Beneficiary Reviews 

Beneficiary designations are an important part of retirement planning that may warrant periodic review. 

Marriage, divorce, children, and other life changes can quickly make beneficiary elections outdated. 

A simple reminder encouraging employees to review and update their beneficiaries may help reduce the likelihood of future legal and administrative complications. 

This is a small but meaningful action that demonstrates thoughtful plan stewardship. 

Strengthen Investment Committee Oversight 

For plans with investment committees, spring can be a practical time to review governance practices. 

Consider: 

• Updating meeting minutes  

• Reviewing fiduciary responsibilities  

• Confirming committee structure and documentation  

• Scheduling future investment and fee reviews  

• Updating the Investment Policy Statement if needed  

Strong governance processes can support the organization and committee members while reinforcing a disciplined fiduciary framework. 

Final Thoughts 

Spring is traditionally associated with renewal and preparation for growth. The same mindset applies to retirement plans. 

A thoughtful midyear review can help assess participation, review fiduciary processes, and identify potential plan administration or communication opportunities. 

Small adjustments made now may support incremental improvements over time. 

Whether it is reviewing fees, enhancing education, improving automatic features, or preparing for SECURE 2.0 changes, May can be a useful time to refresh your retirement plan strategy. 

A consistent review process can help plan sponsors maintain focus on governance, participant engagement, and plan design. 

 

Chris Cristallo, CFP® 

Qualified Retirement Plan Advisor 

 

Disclosures

This material is provided for general informational and educational purposes only and does not constitute investment, legal, tax, or accounting advice. The information contained herein is not intended to be, and should not be construed as, a recommendation, individualized advice, or a solicitation to engage any advisory services or to buy or sell any security. 

The topics discussed are general in nature and may not apply to all retirement plans or employers. Plan sponsors and fiduciaries should consult their own legal, tax, and financial advisors regarding their specific circumstances, fiduciary obligations, and compliance responsibilities under ERISA and other applicable laws. 

References to SECURE 2.0 provisions are provided for general informational purposes only. Not all provisions apply to all plans, effective dates and requirements may vary, and regulatory guidance may evolve. Plan sponsors should work with qualified professionals to determine applicability and implementation timing. 

Any examples or questions included are illustrative only. References to financial education resources or financial professionals are not intended as endorsements or guarantees of outcomes. 

Sources cited are provided for informational purposes only and do not constitute endorsements. Third‑party data is believed to be reliable but is not guaranteed as to accuracy or completeness. 

If applicable, advisory services are offered only pursuant to a written advisory agreement and required regulatory disclosures. Registration with the SEC does not imply a certain level of skill or training. 

Sources 

U.S. Department of Labor, Meeting Your Fiduciary Responsibilities (Updated 2024) 
https://www.dol.gov/general/topic/retirement/fiduciaryresp  

Internal Revenue Service, SECURE 2.0 Act Guidance and Retirement Plan Updates (2024–2025) 
https://www.irs.gov/retirement-plans/secure-2-point-0-act-of-2022  

Vanguard, How America Saves 2025 
https://institutional.vanguard.com/how-america-saves  

Fidelity Investments, 2025 Retirement Analysis and Trends 
https://www.fidelity.com/about-fidelity/employer-services/retirement-trends  

Principal®, The Power of Auto Features (2025) 
https://www.principal.com/businesses/retirement-plans  

J.P. Morgan Asset Management, Guide to Retirement 2025 
https://am.jpmorgan.com/us/en/asset-management/adv/insights/retirement-insights/guide-to-retirement/  

Employee Benefit Research Institute (EBRI), Retirement Confidence Survey 2025 
https://www.ebri.org/surveys/retirement-confidence-survey