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: https://fredreish.com/best-interest-standard-of-care-for-advisors-92/

Best Interest Standard of Care for Advisors #89: Rollovers and the Information That Is Needed About the Participant: https://fredreish.com/best-interest-standard-of-care-for-advisors-89/

Best Interest Standard of Care for Advisors #84: Compliance with PTE 2020-02: Special Issues: Monitoring: https://fredreish.com/best-interest-standard-of-care-for-advisors-84/

DOL Official Sheds Light on Rollover Recommendations: https://www.napa-net.org/news-info/daily-news/dol-official-sheds-light-rollover-recommendations

Rollovers, Regular Basis Focus of DOL Guidance: https://www.napa-net.org/news-info/daily-news/rollovers-regular-basis-focus-dol-guidance

DOL Delays Enforcement of Fiduciary Investment Advice Exemption: https://www.napa-net.org/news-info/daily-news/dol-delays-enforcement-fiduciary-investment-advice-exemption-0