News and Updates
Category: Fiduciary Definition
Retirement Update: Plenty of Changes on Deck for 2024
At the end of October, US Department of Labor (DOL) announced a rule expanding what’s considered “fiduciary investment advice” under the Employee Retirement Income Security ACT, better known as ERISA. This will include guidance from those involved in employer-sponsored retirement plans. The most notable difference will be a change to the five-part test, which will now state that investment advice will be considered fiduciary if the person providing it “does so on a regular basis as part of their business.” The advice must also be “provided under circumstances indicating that the recommendation is based on the particular needs” of the retirement investor, and could potentially be used as a guide in their investment decisions. DOL’s press release states that the update would come into play when financial services providers are charging what they consider “junk fees” for advice, which can cut into the funds saved. An attempt was made by DOL in 2015 to update the definition of “fiduciary,” but fell apart after a circuit court vacated the rule before it could be enforced. The IRS also recently announced plenty of changes in store for 2024, all part of the SECURE 2.0 Act. The headliner of these changes that will impact the majority of people saving for retirement - the maximum employee contribution for 401(k) retirement plans will increase next year. With a $500 increase from 2023, e
