Retirement Plan Legislation & Regulation: What Plan Sponsors Should Watch Heading Into 2027
New fiduciary guidance, the Saver's Match, and several bills in Congress could change how you select investments and administer your plan.
Washington has been busy on retirement policy this year. Between new Department of Labor (DOL) guidance on investment selection, the first details on the Saver's Match, and several bills advancing in Congress, plan sponsors have plenty to track heading into 2027.
Some of these changes are still proposals. Others take effect in a matter of months. Here's what's worth watching and how it could affect your plan's administration and fiduciary oversight.
DOL Proposes A Safe Harbor For Fiduciary Investment Selection
In March 2026, the DOL released a proposed rule on fiduciary duties in selecting designated investment alternatives, the investment options fiduciaries choose for a participant-directed plan's menu. The proposal followed a 2025 executive order on alternative investments in 401(k) plans, but it's written to be asset-neutral and applies to the selection of any investment option.
The rule would create a process-based safe harbor. Fiduciaries who objectively and thoroughly consider six factors (performance, fees, liquidity, valuation, performance benchmarks and complexity) would be presumed to have met their duty of prudence under the Employee Retirement Income Security Act (ERISA).
Why does this matter before the rule is final? It signals where regulators and courts are likely to focus. A well-documented process for adding, retaining, monitoring, and replacing investments remains one of a plan committee's strongest protections.
When Does The Saver's Match Start?
The Saver's Match applies to retirement contributions made in 2027, with the first federal matching deposits expected in 2028 after taxpayers file their 2027 returns. Created under the SECURE 2.0 Act, it replaces the Saver's Credit, a tax credit for lower- and moderate-income savers, with a federal matching contribution deposited directly into a retirement account.
In August, the Treasury Department and Internal Revenue Service (IRS) issued Notice 2026-48 explaining how the program is expected to work. Key points for employers include:
Plans are not required to accept Saver's Match contributions.
Plans that accept the match directly from Treasury will need a plan amendment.
The notice outlines several possible delivery methods, including a registration process and a route that sends the match to a conduit IRA before it's rolled into the plan.
This is a good topic to raise with your recordkeeper during 2027 planning, starting with whether your plan will accept the match and how the process would work.
More SECURE 2.0 Guidance Is On The Way
Several SECURE 2.0 provisions are still awaiting further guidance, including:
Automatic enrollment for certain new plans.
Long-term, part-time employee eligibility.
529 plan-to-Roth IRA rollovers.
Streamlining the rollover process.
Employer matches tied to qualified student loan payments.
As guidance arrives, consider reviewing your plan document, payroll processes, eligibility tracking, and participant communications.
Retirement Plan Legislation Moving Through Congress
Larger Emergency Savings Accounts
In July, the Senate Health, Education, Labor and Pensions (HELP) Committee approved the Emergency Savings Enhancement Act (S. 3333). It would raise the cap on pension-linked emergency savings accounts (PLESAs) from $2,500 to $5,000 and open them to highly compensated employees, which would remove the need to track employee pay for eligibility.
Collective Investment Trusts for 403(b) Plans
SECURE 2.0 changed the tax law to allow 403(b) plans to use collective investment trusts (CITs), but securities law changes are still needed. The House passed those changes in December 2025 as part of the INVEST Act (H.R. 3383), and a Senate version is pending. For nonprofits and schools, this could eventually mean access to lower-cost investment options.
Simpler Form 5500 Filing
The House Education and Workforce Committee advanced the Form 5500 Filing Simplification Act (H.R. 7362) in May. It would make Oct. 15 the standard deadline for calendar-year plans, eliminating the separate extension request, and would allow electronic signatures. A Senate companion bill was introduced in July.
A Cap on Very Large Retirement Balances
A bill introduced in July by Rep. Richard Neal and Sen. Ron Wyden would bar new IRA contributions once a person's combined IRA and defined contribution balances exceed $10 million. Higher-income taxpayers above that threshold would also face required distributions. Its prospects are uncertain.
What Should Plan Sponsors Do Now?
With midterm elections on Nov. 3, the next Congress could change which proposals move forward. Rather than trying to predict every outcome, it may help to focus on what's already scheduled:
SECURE 2.0 implementation: Keep coordinating with payroll providers, recordkeepers, third-party administrators (TPAs), and advisors as guidance is released.
Saver's Match decision: Decide whether your plan will accept the match and how it would be administered in 2027 and 2028.
Fiduciary documentation: Maintain a disciplined, written process for selecting and monitoring investments as the DOL finalizes its guidance.
Stay Ahead Of Regulatory Change
Staying on top of these developments can make new requirements easier to manage while keeping your focus on a well-governed plan. Contact The Siekmann Company to talk with our team about how these changes could affect your retirement plan administration.
Frequently Asked Questions
Do retirement plans have to accept Saver's Match contributions?
No. Under IRS Notice 2026-48, accepting the Saver's Match is optional. Plans that accept it directly from Treasury will need a plan amendment.
What is the DOL's proposed fiduciary safe harbor?
It's a proposed rule that would presume fiduciaries acted prudently in selecting plan investments if they follow a documented process that considers six factors: performance, fees, liquidity, valuation, performance benchmarks, and complexity.
