Things I Worry About (4): Automatic Enrollment (4)
Key Takeaways The SECURE Act 2.0 required that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from now. “New” plans include most that were established on or after the enactment date of SECURE 2.0—December 29, 2022. Unfortunately, it is likely […]
Things I Worry About: Automatic Enrollment (1)
This starts a new series of blog posts…Things I Worry About. I will number these, but they will be more episodic than sequential. Key Takeaways The SECURE Act 2.0 requires that “new” 401(k) and private sector 403(b) plans automatically enroll their eligible employees, but not until plan years beginning after December 31, 2024…just weeks from […]
The New Fiduciary Rule (21): Requirement to Correct Failures with PTE Conditions (Part 3)
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs (including transfers). Key Takeaways The expansive definition of fiduciary in the DOL’s proposed regulation will cause many more […]
The New Fiduciary Rule (20): Requirement to Correct Failures with PTE Conditions (Part 2)
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs (including transfers). Key Takeaways The expansive definition of fiduciary in the DOL’s proposed regulation will cause many more […]
The New Fiduciary Rule (19): Requirement to Correct Failures with PTE Conditions (Part 1)
The U.S. Department of Labor has released its package of proposed changes to the regulation defining fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs (including transfers). Key Takeaways The DOL’s proposed fiduciary regulation defines fiduciary recommendations to include, among other things, one-time […]
PTE 2020-02: The Remaining Steps: Retrospective Review and Correction of Compliance Failures (Part 1)
Key Takeaways The next step in compliance with the DOL’s PTE 2020-02 is to conduct the annual retrospective review for 2022 and to reduce the review to a written report to be signed by a “senior executive officer.” The review and report must be completed within 6 months after the end of the year. In […]
Best Interest Standard of Care for Advisors #93: Correction of Failures to Satisfy PTE 2020-02
Key Takeaways The DOL’s expanded definition of fiduciary advice is described in the preamble to PTE 2020-02. When conflicted fiduciary advice is given to retirement investors (that is, retirement plans, participants (including rollovers), and IRA owners), it results in prohibited transactions under the Internal Revenue Code and ERISA. But the PTE then provides relief for […]