DOL Final Fiduciary Rules Impact on Solo 401k and Self-Directed IRA LLC

In mid December of 2020, the Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) released  its fiduciary prohibited transaction exemption  (PTE) 2020-2  providing guidance to investment advisors who consult 401k and IRA investors. PTE 2020-2 also aligns with the Securities and Exchange Commission’s Regulation Best Interest — a rule that industry officials say will have a significant impact on rollover recommendations and advice to IRAs including self-directed IRA LLCs and self-directed solo 401k plans.

PTE 2020-02 requires advisers to take the following into account when providing recommendations and advice to retirement account holders of retirement account’s such as IRAs and 401k plans, for example:

  • receive only reasonable compensation;

  • make no misleading statements in the course of their advising; and

  • act in the client’s best interest.

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About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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