As Biden Sticks To The Changes Of The Trump Era, New Rules For 401 (K) Rollovers Will Take Effect
Source: New York News Times, by Daniel Redmayne
The Ministry of Labor said late last week that it would not replace it, but build it under the Trump administration’s regulations to manage advice affecting trillions of dollars in retirement accounts.
With many rollovers coming into effect on Tuesday, hundreds of billions of dollars a year will be transferred from 401 (k) to personal retirement accounts and will be more tightly regulated. It also gives investors the right to file a proceeding or arbitration claim if they feel they have been given bad rollover advice.
Investment fees tend to be lower for 401 (k) plans than for IRAs, so “financiers can move funds from 401 (k) plans to IRAs and manage them in a more profitable way. We have a strong incentive to do so, said Barbara Roper, director of investment protection for the non-profit American Consumers Federation.
“This is a signal from the Ministry of Labor and we will continue to strengthen consumer protection so that rollover recommendations are truly in the best interests of consumers,” she said.
The regulation will also keep advisors to IRA owners at a higher level in managing conflicts of interest, including conflicts of interest that arise in the sale of products such as variable annuities that pay commissions and other sales incentives. Said Fred Leish. We specialize in employee benefits.
As Biden sticks to the changes of the Trump era, new rules for 401 (k) rollovers will take effect.
Filed Under: ACA/Health Reform