Episode summary
401(k) Real Talk Episode 192: May 13, 2026
Summary
Fred Barstein’s roundup focused on five industry stories that point to where retirement and benefits are heading: payroll-integrated 401(k) distribution, wealth management expansion, ERISA litigation, benefit cutbacks, and consolidation in fiduciary services. He said QuickBooks naming Vestwell as its exclusive 401(k) partner could help bring retirement plans to the millions of small businesses that still lack coverage, but it also raises questions about the advisor’s role in a more automated payroll-linked model.
He also highlighted Empower’s strong first quarter, including 23% year-over-year earnings growth, 20 million investors, and a continued push into personal wealth advice. Barstein framed that move as a bet on participants’ off-platform assets and on the growing opportunity in wealth management tied to retirement plans.
On the litigation side, he argued that voluntary benefits are becoming a new fiduciary battleground, with Schlichter’s fifth lawsuit targeting fee and disclosure practices. He closed by tying current economic pressure to real plan behavior: TTEC paused its 3% match to fund AI investment, retirees are returning to work, and sponsors may keep tightening benefits as costs rise. He also noted the Leafhouse-Mesirow deal as another sign that fiduciary services and CIT infrastructure remain active consolidation areas.
Key takeaways
- Fred Barstein said QuickBooks’ exclusive Vestwell partnership could extend 401(k) access to millions of small businesses, but it may also compress the advisor role.
- Empower reported 23% year-over-year Q1 earnings growth and 20 million investors, while doubling down on its personal wealth division.
- Barstein said Schlichter’s fifth voluntary-benefits lawsuit suggests fee and disclosure issues are spreading beyond traditional DC plans.
- TTEC suspending its 3% match shows that even retirement benefits can be cut when companies prioritize AI spending and cost control.
- He said the Leafhouse-Mesirow transaction highlights both consolidation in fiduciary services and the appeal of businesses tied to CIT efficiency.
Notable quotes
“QuickBooks, which serves 36 million clients, named Veswell as their exclusive 401k partner”
“Empower announced record Q1 earnings of 23% over last year, topping 20 million investors and 2 trillion in assets, adding 335,000 new participants last quarter alone”
“The lawsuit claims that Lockton and BCI commissions averaged a whopping 40% which equated to $4 million annually from 2020 to 2024”
“TTEC, a $2 billion tech outsourcing company, suspended its 3% match to invest in AI”
“There are no easy solutions for plan sponsors, retirees, and workers, especially those without access to retirement plan at work”
How the episode opens
Greetings and a warm welcome to this week's edition of 401k real talk. This is Fred Barcstein, contri contributing editor at Wealth Management's RPA Omni Channel and 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, QuickBooks, which serves 36 million clients, named Veswell as their exclusive 401k partner. The announcement allows follows the acquisition of the 27,000 guideline plans not using Gusto as their payroll provider and an additional $385 million in series E funding.
Veswell also collaborates with Morgan Stanley, JP Morgan, Manual Life, John Hancock, and Amazon's delivery partners. Veswell has become the dominant state IRA provider recently named by New York State and soon to take over Illinois's program. According to Veswell CEO Aaron Shum, twothirds of employees working in organizations with less than 50 workers do not have access to a retirement plan at work.
Integrating DC plans into payroll, leveraging tech and AI will streamline workflow and lower costs. The question is what is the role of the advisor in these plans and are there enough of them to go around? Next story.
Empower announced record Q1 earnings of 23% over last year, topping 20 million investors and 2 trillion in assets, adding 335,000 new participants last quarter alone. Citing the 1 trillion is that is expected to roll out of over the next 5 years. Empire is doubling down on the personal wealth division, which is aggressively hiring new advisors while reworking their compensation and saw a 65% earnings increase for that division alone.
CEO Ed Murphy noted that participants have three times as much assets off platform indicating a greater emphasis will be made on the 6 trillion that their participants have.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- 401k partner updates
- empower wealth division
- voluntary benefits lawsuits
- 401k match suspensions
- private credit liquidity
Companies and tickers mentioned
- INTU
- EMP
- TTEC
- ZM
- VOYA
- Vestwell
- Intuit
- Empower
- TTEC
- Deloitte
- Zoom
- Leafhouse
- Mesirow
- Cerulli
- Voya Financial
- Fidelity
- Vanguard
- NEPC
- MFS
Watch the episode
Watch “401(k) Real Talk Episode 192: May 13, 2026” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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