DOL new fiduciary investment advice guidelines under Prohibited Transaction Exemption 2020-02 went into effect on February 16, 2021 and applies to Self-Directed Solo 401k plans & Self-Directed IRAs

On February 12, 2021, a press release was issued by the Department of Labor to confirm the new fiduciary investment advice guidelines under Prohibited Transaction Exemption 2020-02 will go into effect on February 16, 2021. The DOL adds that the temporary enforcement policy stated in Field Assistance Bulletin 2018-02 will remain in place until Dec. 20, 2021.

The industry was previously unsure whether the regulation  “Improving Investment Advice for Worker & Retirees” would pass as it was drafted under the Trump administration, once the Biden administration took over since a memo had been issued to regulatory agencies suspending new regulations issued during the final days of the Trump administration.

This new law impacts advisors  who provide rollover recommendations to their solo 401k and self-directed IRAs as it will  be considered fiduciary advice.

“This exemption allows for important investor protections, including a stringent ‘best interest’ standard of care for fiduciary recommendations of rollovers from ERISA-protected retirement accounts,” said Ali Khawar, deputy assistant secretary of labor for the Employee Benefits Security Administration.

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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