ERISA Cash Cab

Come along with RPAG’s ERISA Experts for a ride in our “ERISA Cash Cab” as we tour the landscape of recent ERISA developments. Will Joel, John, and a special surprise passenger reach their destination by answering all of the questions correctly, or will they miss “three strikes” and get dropped off early? watch the video below to find out.

• Joel Shapiro, Sr. VP, ERISA Compliance
• John Nelson, Managing Director

• If an advisor makes a recommendation for a rollover, it is fiduciary in nature if it meets the 5-part 1975 test, unless it is on a one-time basis. Only ongoing relationships or the beginning of an intended future ongoing relationship will be considered fiduciary in nature.
• If advisors are going to rely on exemption PTE 2020-02 (as long as they haven’t been banned for 10 years after conviction for specified crimes). The requirements are as followed, Acknowledge fiduciary status in writing, disclose services and material conflicts of interest, follow the Impartial Conduct Standards, adopt policies and procedures designed to ensure compliance with ICS and mitigate conflicts, document and disclose reasons that rollover recommendations are in the investor’s best interest, and conduct an annual retrospective compliance review and certification.
• Alternatives to rollover, investments available, whether an employer pays fees, etc., are all things to consider when determining if a rollover recommendation is in an investor’s best interest.
• Cryptocurrency has not been inherently banned from being used in a retirement plan, but the DOL has told fiduciaries "to exercise extreme care before considering adding a cryptocurrency option to its 401(k)" and will essentially be under a microscope. Some concerns about adding crypto to a plan include fraud, theft, volatility, recordkeeping gaps, regulation, and so much more.

Are you looking for more insights? Download the presentation here.

________________________________________