Updated
Updated · The Manila Times · Aug 19
CFP Board Issues 7-Step Rollover Guide for $1 Trillion 401(k) Transfers
Updated
Updated · The Manila Times · Aug 19

CFP Board Issues 7-Step Rollover Guide for $1 Trillion 401(k) Transfers

2 articles · Updated · The Manila Times · Aug 19

Summary

  • $1 trillion in annual 401(k) rollovers prompted CFP Board to publish a new fiduciary guide for advisers weighing whether clients should move assets from employer plans.
  • The guide applies a 7-step duty-of-care process to rollover advice and says advisers must disclose and manage material conflicts of interest tied to IRA recommendations.
  • It also lays out four alternative courses of action, 10 plan features to compare across options, and eight characteristics advisers may assess before making a recommendation.
  • CFP Board said millions of rollovers occur each year and warned that conflicted or poor advice can saddle savers with unnecessary costs or significant tax penalties.

Insights

Could the CFP Board's strict new seven-step rollover guide inadvertently price middle-class investors out of crucial financial advice?
Are hidden adviser conflicts secretly draining your retirement savings through unnecessary 401(k) rollover fees?
Why might leaving your retirement funds in an old employer plan actually be safer than moving them to a new IRA?