401(k) Real Talk Episode 193: May 20, 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:

Related:401(k) Real Talk Episode 192: May 13, 2026

 

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

Record keeper consolidation marches on with Ascensus paying a reported robust price for PE backed American Trust. But unpacking the deal reveals that other divisions may have driven the valuation. It had been reported that American Trust was shopped their RK division alone garnering little interest and eventually put the entire company on the block.

AT, founded by former Matrix CEO John Moody, had acquired several smaller, 3^rd tier RKs starting with 1^st Mercantile in 2019 followed by American Trust, United Trust and LT Trust. But the big kahuna is Mid Atlantic now with $185 bn in assets serving 125,000 retirement plans, 136,000 clients and over 90 independent RKs and TPAs. They also have a budding wealth practice, tech division and PEP group called FiduciaryxChange.

Related:401(k) Real Talk Episode 191: May 6, 2026

This is the 1^st deal for Ascensus in a while and under new CEO Nick Good which may signal growing interest in offering wealth and trust services like CITs while expanding their PEP offering. Though Ascensus still recordkeeps smaller Vanguard DC plans, they no longer market them as Vanguard is growing their own sales force and outsources large plan record keeping to Infosys.

Next story:

Advisors are on the move at near record pace with M&A activity booming. According to Discover, almost 40,000 of the 800,000 IARs and registered reps changed firms with net gains led by retail RIAs and independent BDs and net losses led by wirehouses and insurance BDs.

Advisors with >31 years of experience have grown to 14% of the market up from just 5% 25 years ago which may, in part, account for a record 142 deals with $1.67 tr last quarter alone according to Echelon which beat the record set last quarter.

Private equity backed acquirers dominant the deals with the largest by Carlyle acquiring MAI Capital.

NEXT STORY

According to noted ERISA litigator Jerry Schlichter and US Senator Elizabeth Warren, private credit and equity do not belong in DC plans and pose a substantial risk.

Related:401(k) Real Talk Episode 190: April 29, 2026

In a recent interview, Schlichter noted that the lack of transparency and liquidity make alternatives a bad fit for DC plans, even if within TDFs and managed accounts. Companies go out of business or file for bankruptcy, warns Schlichter, while layoffs and participant emergencies will stress the less liquid investments. He also stated that these investments which cost more will require greater due diligence and asked why they need a special safe harbor if they are such good investments that.

At a recent Milken Institute meeting a private credit executive said his industry should stop calling their investments semi-liquid which he believes is causing more harm than good.

Meanwhile Senator Warren sent a letter to the Treasury Secretary and SEC Chair warning that alternatives in DC plans could cause a financial crisis

FINALLY

Just like convergence of wealth and retirement at the workplace is stressing the defined contribution industry forcing massive technology and strategic changes, so is the explosion of new plans due primarily to government mandates.

Read my recent WealthManagement.com/RPA column about who will sell and service these new plans and why they must focus on helping the business owners save money on taxes while savings more for retirement than the 401k limits.

FINISH

So those were the most important stories from the past week. I listed a few others I thought were worth reading covering:

How AI will shock 401(k) fiduciaries 

Schwab launching AI tools to serve the under $1M market 

Leading academics propose a path for in-plan retirement income adoption 

PGIM launches 1st private credit CIT for DC plans

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.