Here the intent is to make it possible for a plan/IRA to apply the QDIA safe harbor to involuntary rollovers. But how will this impact plan participants?
Tag "decumulation"
This broader definition of fiduciary may impose a potential hardship on a segment of the retirement industry that has been trying hard to gain a foothold in plan infrastructure.
If you think the web of fiduciary duties is complex in a 401k plan that focuses on getting employees to save for retirement, imagine how much more intricate it becomes if the plan also has to cater to retired employees.
Perhaps, just as plan sponsors have developed onboarding programs for new hires when it comes to saving for retirement, maybe they should add “unboarding” programs as a bookend for those nearing retirement.
Simpler is better, the Fiduciary Paradox, and volatility isn’t risk.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 7/6/18
Be wary of these regulatory plugs, marketing buzz, and investment fads.