Mid-Year Plan Reviews: Why Summer is the Smart Time to Assess Your 401(k) Strategy

Posted on Jul 11, 2025

Summer isn’t just for vacations—it’s also a smart time for employers to team up with their TPA for a mid-year 401(k) plan review. Taking a closer look now allows plan sponsors to catch small issues early, avoid expensive compliance problems later, and prepare for a smoother year-end.

Too often, plan sponsors wait until Q4 to address plan administration, contribution corrections, or design changes—when time is tight and options are limited. By conducting a mid-year review, you give yourself breathing room to assess plan performance, review participant data, and ensure that key compliance requirements are on track.

What to review mid-year:

1. Nondiscrimination compliance – Consider running a mid-year projection of ADP/ACP tests as a “preview” to avoid failing at year-end.
   
   
2. Fiduciary duties – Summer is a good time to revisit your responsibilities under ERISA: prudent investment oversight, timely filings, and fee benchmarking. Resources like the DOL’s guide on fiduciary duties are helpful.
   
   
3. Operational processes – Double-check contribution remittances, loan administration, eligibility tracking, hardship distributions, and notice delivery.
   
   
4. Employee communications – Send a summer reminder about participation, investment option reviews, catch‑up contributions, upcoming enrollment periods, and any planned educational sessions.

By being proactive, you're not just fulfilling fiduciary duties—you’re strategically enhancing your plan’s performance and participant outcomes. Working closely with your TPA is key to ensuring these summer check-ins are both efficient and effective.

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.