The New Fiduciary Rule (6): The Fiduciary Definition of Fiduciary
The US 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 advice to plans, participants (including rollovers), and IRAs (including transfers of IRAs). Key Takeaways The Department of Labor’s proposed regulation defining fiduciary investment and insurance/annuity advice to […]
The New Fiduciary Rule (3): Fixed Indexed Annuities
The US Department of Labor has released its package of proposed changes to the regulation defining nondiscretionary fiduciary advice and to the exemptions for conflicts and compensation for investment recommendations to retirement plans, participants (including rollovers), and IRAs. Key Takeaways Statements from the White House indicate that the DOL and the White House are concerned […]
The New Fiduciary Rule (2): The Impact
The US 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 advice to plans, participants (including rollovers), and IRAs. Key Takeaways The Department of Labor’s proposed fiduciary “package” will have different impacts on different types of service providers […]
The New Fiduciary Rule (1): An Overview
The US 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 advice to plans, participants (including rollovers), and IRAs. Key Takeaways One time investment recommendations to qualified and ERISA retirement plans and their participants, and to IRA owners, […]
The DOL’s Fiduciary Interpretation and the Florida Court Decision
In 2020, the Department of Labor (DOL) issued its Prohibited Transaction Exemption (PTE) 2020-02 to provide an exemption to most prohibited transactions resulting from nondiscretionary fiduciary advice to retirement plans governed by either ERISA or the Internal Revenue Code, or both, as well as nondiscretionary fiduciary advice to IRAs. The DOL’s Fiduciary Interpretation and Prohibited […]
The SECURE Act 2.0: The Most Impactful Provisions #7—Tax Credits for Administrative and Contribution Costs for New Plans for Small Employers (Part 2)
Key Takeaways The SECURE Act 2.0 provides significant tax credits for startup plan costs—for both administration and contribution costs. The credits are fully available for employers with 50 or fewer employees and partially available up to 100 employees. This provision is effective now, that is, it is effective for tax years beginning after December 31, […]
The SECURE Act 2.0: The Most Impactful Provisions #6 – Tax Credits for Administrative and Contribution Costs for New Plans for Small Employers (Part 1)
Key Takeaways The SECURE Act 2.0 provides significant tax credits for startup plan costs—for both administration and contribution costs. The credits are fully available for employers with 50 or fewer employees and partially available up to 100 employees. This provision is effective now, that is, it is effective for tax years beginning after December 31, […]
Best Interest Standard of Care for Advisors #94: Maintenance of Documentation for Compliance with 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 […]
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 […]
Best Interest Standard of Care for Advisors #92: Consideration of Costs in the Evaluation of Rollovers
Key Takeaways The DOL’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 both its Regulation Best Interest (Reg BI) for broker-dealers and Interpretation Regarding Standard of Conduct for Investment Advisers (Investment […]