401(k) Real Talk Episode 202: July 22, 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
Soaring healthcare costs for small and mid-sized employers are causing them to reevaluate their relationships with their brokers and could affect spending on other benefits like retirement.
A recent study indicated that 39% of these employers show double digit increases with one in five experiencing more than 30% price hikes. As a result, organizations are looking for a new breed of brokers who can help them understand fees in a world where transparency is challenging to help them to find ways to cut costs. 50% of employers are likely to change brokers according to the study.
Convergence of wealth and retirement at work is full on but benefits will be next as employers and workers balance saving for retirement and paying for increased healthcare costs just as day to day expenses continue to escalate.
Next story:
Some wealth advisors are now recommending HSAs over IRAs realizing the triple tax benefits. Though still relatively new started in 2004 and only available to employers using high deductible healthcare plans, momentum is mounting as assets reached $174bn in 2025 with $89 bn in contributions and are expected to top $234bn by 2028 with $111bn in new assets. Annual contributions are limited to $4400 for individuals and $8750 for families.
If used properly, workers can pay healthcare expenses out of pocket allowing their HSAs to grow and then withdraw in retirement tax free.
As more employers look to cut soaring healthcare expenses, the move to HSAs over IRAs recommended by savvy advisors could accelerate.
NEXT STORY
Cap Group announced major upgrades to their record keeping platform leveraging innovation done for one of their larger clients to make administration and onboarding easier focused on financial wellness and employee education while allowing for more fund flexibility.
As one of the largest DC providers, Cap Group has mostly served the small and micro markets. But upgrades to their “bundled” record keeper direct platform along with their partnership with Financial Finesse could signal a move up market which is important as advisors, especially hybrid wealth advisors and many RPAs, look to partner with record keepers who support their efforts to offer wealth services to participants, not compete.
NEXT STORY
Brilliant column by Will Prest, the leading RPA tech visionary about how advisors need to become tech plan architects and help plans and participant navigate, integrate and utilize tech esp AI to help streamline admin and improve outcomes.
Beyond fees, funds and fiduciary, plan sponsors are looking for advisor to help them utilize technology with advisors that lean in enjoying a huge completive advantage.
Look for more columns from Will on WealthManagement on how advisors can better help clients leverage technology in DC plans.
FINALLY
In the 2000’s when ETFs started to explode, a couple of high-flying firms like iShares and NASDAQ announced their intent to enter the 401(k) market. Though there are and were great advantages to ETFs over mutual funds like price, efficiency and transparency, due to record keeper operational challenges, ETFs never took off in 401k plans other than as building blocks within professional managed investments like target date funds.
Read my WealthManagement.com/RPA column about how a recent SEC ruling allowing dual share classes would facilitate the entry of ETFs into 401k and 403b plans while eliminating their operational challenges.
FINISH
So those were the most important stories from the past week. I listed a few others I thought were worth reading covering:
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Bankers predict flatlining of RIA valuations
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The stark reality of record keepers competing with advisors
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Creative Planning moving into commercial insurance with recent acquisition
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DC industry backs bill to allow CITs in 403(b) plans
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Lessons learned from ERISA litigation
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.
