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

Greetings and a warm welcome to this week's edition of 401k real talk. This is Fred Barson, contributing editor at Wealth Management's RPA Omni Channel, CEO at Trrow, TPSU, and 401k TV. 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 anywhere else.

So, let's get real. First story. Though the April job growth of 178,000 beat expectations, there is still concern about the economy, which led the Fed to keep interest rates steady with unease about the war.

Healthc care led with 76,000 jobs while most other segments lagged. Though the unemployment rate dropped a tick, an estimated 400,000 people exited the workforce. According to the University of Michigan, consumer sentiment is low with concerns about the possibility of stagflation, low growth, and high inflation.

Focus on improving retirement plans still remains high among plan sponsors. Now, attentive on improving participant outcomes, but HR and benefits staff attrition continues as well as cost concerns even though DC plans are much less expensive than most other benefits. Second story, an executive order announced the launch of a Trump IRA intended to expand coverage to lower paid workers without access to a retirement plan at work.

beginning next year and leveraging the federal thrift savings plan with an open marketplace using lowcost ETFs or mutual funds that back US equities. The government will provide a $1,000 match. The April 30th executive order follows a successful launch of Trump accounts for children b born to US citizens 2025 through 2028 which has over 4 million accounts.

The good news is that the current administration is focused on expanding retirement coverage. The reality is that voluntary plans like the ill- fated Myra accounts terminated in 2018 got very little traction and Obama's mandatory autoIRRA proposal did not pass Congress.