More than $400 billion in defined contribution (DC) assets were rolled into individual retirement accounts (IRAs) with the help of an advisor in 2021 illustrating the sizeable opportunity for wealth managers.

Financial professionals looking to capture rollovers from DC plans need expertise in rollover-related issues like non-Roth after-tax account opportunities, special rules for Net Unrealized Appreciation, in-service plan rollovers, the Warn Act, and more.

Are you ready?
The rules, regulations, and guidance on conducting compliant rollovers has been dynamic and complex.

DOL PTE 2020-02 went into effect on Feb 16, 2021. Enforcement began Jan 31, 2022

Financial advisors who give advice to clients about whether to roll over 401(k) plan assets into an IRA are subject to a new set of regulations.  PTE 2020-02 expands the definition of a “prohibited transaction” under ERISA to include any recommendation for rolling over 401(k) assets into an IRA.

Principal can help advisors understand documentation requirements and processes to protect their business, meet required fiduciary standards, and deliver the best outcome for clients.

Overview of topics discussed:

• State of the rollover market
• Non-Roth after-tax accounts
• Special tax rules for NUA The Rollover Reset: PTE 2020-02 Improving Investment Advice for Workers & Retirees
• Understanding plan distribution options
• Key considerations for rollovers
• In-service rollovers
• Warn Act