2026 promises to be an interesting and pivotal year for the defined contribution industry, with plan sponsors, advisors and the providers who support 401(k) plans facing critical decisions.
The pace of technological innovation is accelerating, especially artificial intelligence, with FIS releasing an entirely new cloud-based record keeping system for Omni and Relius users. Plan sponsors have woken up. There is bipartisan support for new laws and regulations. The convergence of wealth and retirement is heating up, driven by plan sponsor demand and the economic realities for advisors and record keepers.
Beyond fees, funds and fiduciary, retirement plan advisors are now expected to offer participant services enabling clients to make the right decisions for their employees and themselves. It has never been more important for advisors to move from being a rules-based fiduciary to stewardship as more record keepers and wealth advisors look to compete.
The more enlightened advisors will eliminate conflicts as much as possible and explain in plain English the options to clients, enabling them to make the best decisions. Advisors should have an opinion on all potential decisions, but there is no true north that is right for every plan and participant.
So, in order of importance, here are the 10 biggest decisions facing 401(k) and 403(b) plans in 2026:
