There are some “new” rules with rollovers—and a new requirement that kicks in July 1.
The Labor Department’s expanded definition of fiduciary advice is described in the preamble to PTE 2020-02. The PTE then provides relief for conflicted non-discretionary recommendations (for example, rollover recommendations), if its conditions are satisfied.
In this episode Nevin (Adams) & Fred (Reish) discuss the new parameters, how they’re applied, the conditions that might (and might not) be sufficient to warrant rolling money out of a qualified plan and into an IRA—and the “new” requirement that the justification as to why that move is in the interests of the plan participant—and be in writing, effective July 1.
Episode Resources
- Best Interest Standard of Care for Advisors #92: Consideration of Costs in the Evaluation of Rollovers
- Best Interest Standard of Care for Advisors #89: Rollovers and the Information That Is Needed About the Participant
- Best Interest Standard of Care for Advisors #84: Compliance with PTE 2020-02: Special Issues: Monitoring
- DOL Official Sheds Light on Rollover Recommendations
- Rollovers, Regular Basis Focus of DOL Guidance
- DOL Delays Enforcement of Fiduciary Investment Advice Exemption
