Staying Ahead: Key Focus Areas for 401(k) Plan Success in 2025

As 2025 begins, 401(k) plan sponsors are entering another dynamic year shaped by fresh regulatory updates, technological advancements, and the evolving expectations of employees. At Rose Street Advisors, our team remains committed to helping you stay ahead, ensuring your retirement plan remains competitive, compliant, and effective. This blog post highlights key areas to focus on in 2025.

1. Adapting to SECURE 2.0 Updated

The full rollout of SECURE 2.0 provisions continue into 2025. Plan sponsors should prioritize compliance with new rules, such as expanded catch-up contributions and automatic enrollment requirements. Partner with your advisor to ensure that plan amendments are timely and align with the updated guidelines. These changes represent an opportunity to enhance plan design for participants.

2. Embracing Flexible Fiduciary Practices

Maintaining fiduciary excellence requires regular evaluation of your plan’s operations, investment lineup, and participant experience. With shifting market dynamics, now is the time to reassess the performance and fees of your investment options and adjust the plan design to meet employee needs.  

3. Enhancing Financial Literacy Through Technology

A Standout trend in 2025 is the growing emphasis on personalized financial education. Employees expect interactive, accessible resources to guide their retirement decisions. Whether it’s mobile apps, webinars, or AI-driven tools, consider these platforms that resonate with a digitally savvy workforce. Better education means better engagement—and ultimately, better retirement readiness. 

4. Automation and Plan Design Optimization

Automatic features, including enrollment, escalation, and re-enrollment, continue to be regulatory favorites. These features not only align with industry best practices but also significantly boost participation rates. Evaluate how incorporating these features, along with well-chosen QDIAs, can simplify the participant experience and increase overall plan effectiveness. 

5. Strengthening Cybersecurity Measures

As the use of digital platforms grows, so does the importance of robust cybersecurity. Implement advanced measures to protect participant data and ensure your service providers meet stringent security standards. A secure plan inspires trust and safeguards your organization against potential liabilities. 

6. Benchmarking for Competitiveness

With economic pressures and increased transparency, regularly benchmarking your plan against peers is critical. Review fees, performance, and participant outcomes to ensure your plan stays competitive. This analysis also serves as a tool to negotiate better terms with providers and enhance the overall value of your plan.  

7. Streamlining Administrative Processes

Simplify plan administration by leveraging modern tools and outsourcing where appropriate. Efficient processes save time, reduce errors, and allow your team to focus on higher-level strategic initiatives. 

Looking Ahead

As 2025 unfolds, the ability to anticipate and adapt to changes will define the success of your 401(k) plan. At Rose Street Advisors, we specialize in breaking down complexities and providing tailored guidance. Whether it's navigating new regulations, enhancing participant engagement, or leveraging technology, we are here to elevate your retirement program.

If you'd like any specific updates or additional insights for 2025, let us know!

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Since 2012 at Rose Street, Scott has been responsible for helping the firm’s individual wealth management clients with income strategies for retirement and consulting with employers with their employee retirement plans. In free time, he enjoys golf, biking, skiing, cooking, and traveling. Fun Fact, Scott has a hobby of filling growlers with coins!

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #7528894.1

Kalamazoo, MI, July 18, 2022 — Rose Street Advisors is pleased to announce its recent affiliation with RPAG, one of the largest independent practice management firms nationally. Rose Street Advisors will utilize RPAG’s leading-edge retirement plan consulting tools and resources to help grow their practice and deliver enhanced value to plan sponsor customers. “The decision to partner with RPAG stems from our desire to be the best consultants in our local market,” comments Scott Higgins, Financial Advisor of Rose Street Advisors. “We recognize RPAG’s technology, tools and training as one of the highest caliber system of its kind, driving results through proven processes utilized by hundreds of financial professionals all across the country.” Members of RPAG access a robust technology-driven platform of proprietary tools and services to support qualified and non-qualified plans. Flagship solutions include its proprietary Scorecard System™ for fund ranking, Provider Analysis™ for RFP/Fee benchmarking, Fiduciary Fitness Program™ for ERISA plan compliance and ongoing training and the Fiduciary Briefcase™ for the sponsor’s virtual file storage. “Our holistic approach to retirement plan consulting allows financial professionals to effectively and efficiently serve the needs of plan sponsors with exceptional precision, care and consistency,” states Nick Della Vedova, President of RPAG. “We are pleased to support serious retirement plan financial professionals like Rose Street Advisors.”

About Rose Street Advisors

At Rose Street Advisors, our team of experts has been dedicated to helping people plan for a bright financial future for more than 70 years. We work closely with our clients - business owners, affluent families, and high-income professionals - to achieve their holistic financial goals. By providing employee benefits, HR consulting, life insurance, investment management and retirement plans under one roof, we ensure our clients are well-taken care of both today and for generations to come.

About RPAG

RPAG™ is an exclusive alliance of independent retirement financial professionals and institutions inspired to create successful outcomes by protecting plan fiduciaries and engaging plan participants. RPAG supports thousands of financial professionals across the U.S., who collectively serve over 80,000 plan sponsors, $800+ billion in assets under influence, and more than 7 million plan participants. Learn more at rpag.com. Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor. Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #4842556.1

Scott Higgins

AIF ® CFP ® CPFA ® | FINANCIAL ADVISOR

Since 2012 at Rose Street, Scott has been responsible for helping the firm’s individual wealth management clients with income strategies for retirement and consulting with employers with their employee retirement plans. In free time, he enjoys golf, biking, skiing, cooking, and traveling. Fun fact, Scott has a hobby of filling growlers with coins!

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