The high-profile Drinker Biddle partner points to an area some advisors might overlook.
In this interview titled “Fred Reish: One Major Rollover Concern” is a brief discussion featuring Fred Reish, a partner at Drinker Biddle, at the FI 360 conference in Nashville. The conversation centers around the fiduciary rule, which was a significant topic at the time.
Key points include:
- Fiduciary Rule Implementation: The rule, set to take effect on June 9, was expected to remain unchanged due to insufficient time for revision or withdrawal.
- IRA Rollovers: There is concern that individuals retiring in their 60s may roll over 401(k) funds into IRAs and encounter higher fees and lower-quality investments in the retail market. The fiduciary rule aims to ensure that rollovers are in the best interest of the client.
- Advisors’ Responsibility: Under the fiduciary rule, advisors recommending rollovers must compare the existing 401(k) plan with the proposed IRA to ensure the client is getting a better deal. If the IRA does not offer better or equal benefits, advisors should recommend keeping the funds in the 401(k) plan.
The discussion highlights the significant changes brought about by the fiduciary rule and the increased responsibility on advisors to act in the best interest of their clients.