CFP Board Issues 7-Step 401(k) Rollover Guide as $1 Trillion Shifts Each Year
Updated
Updated · The 401(k) Specialist · Aug 21
CFP Board Issues 7-Step 401(k) Rollover Guide as $1 Trillion Shifts Each Year
3 articles · Updated · The 401(k) Specialist · Aug 21
Summary
$1 trillion in annual rollover assets prompted CFP Board to publish a guide telling CFP professionals how to meet fiduciary duties when advising on 401(k) rollovers.
The guide says rollover advice can create material conflicts of interest that must be disclosed and managed, and it applies a 7-step Duty of Care process to recommendations.
It directs advisers to weigh four alternative courses of action, 10 features of the current employer plan and each alternative, and eight characteristics of each option before recommending a move.
CFP Board said millions of rollovers occur every year, and poor or conflicted advice can saddle savers with unnecessary costs or significant tax penalties over a lifetime.