Season 2 Episode 6 “New Role(s) With Rollovers “

Season 2, Episode 6 – New Role(s) With Rollovers

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 & Fred 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: 

• DOL Official Sheds Light on Rollover Recommendations

• Best Interest Standard of Care for Advisors #89: Rollovers and the Information That Is Needed About the Participant

• Rollovers, Regular Basis Focus of DOL Guidance

• Best Interest Standard of Care for Advisors #84: Compliance with PTE 2020-02: Special Issues: Monitoring

• DOL Delays Enforcement of Fiduciary Investment Advice Exemption