DOL Rule

Will it make a difference in the quality of the advice they receive? Next year, the Department of Labor is scheduled to introduce new rules regarding retirement planning. Under these rules, any financial services industry professional who makes investment recommendations to workplace retirement plan participants or IRA owners in exchange for compensation will be considered a fiduciary.1 What does that mean? It means that this person has an ethical and legal duty to provide advice that is in your best interest.1 Many investment and retirement planning professionals have reacted to the DoL’s move with “We already do that.” After all,

If your company sponsors a 401(k) plan, you must read this. The Labor Department has issued new rules for tax-advantaged retirement accounts. Potentially, they affect every 401(k) plan participant. They also impact IRA rollovers originating from 401(k) plans, and investment recommendations that may be made pertaining to any distributions from 401(k)s. Under the new rules, any financial services industry professional who makes investment recommendations to 401(k) plan participants, 401(k) plan sponsors, or IRA owners in exchange for compensation will be considered a fiduciary under ERISA. A fiduciary is someone who accepts a distinct, legally binding obligation to manage invested assets