Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
September 11th, 2015
Benefits & Administration
Misconceptions Fog Fiduciary Rule’s Upside
Owners of small-balance individual retirement accounts (IRAs) are not who most people think they are, the Department of Labor (DOL) says in a new Q&A document. Defending objections to its fiduciary rule proposal, the DOL says it is particularly concerned with those low- and middle-income workers and families who enter the IRA marketplace through rollovers from a workplace-based retirement plan. These workers depend heavily on these plans to do most of their saving, so rolling over their assets is one of the most important financial decisions they can make. Right now, the DOL contends, many retirement investment advisers do not have to adhere to fiduciary standards when giving rollover advice, and depending on the arrangement, their advice does not have to be in the saver’s best interest.Read more >