By raising the standard on advisors recommending IRA rolloversto a fiduciary level of care, the Department of Labor’s fiduciary rulemay restrict assets in 401(k) plans from flowing to IRA accounts,according to the latest edition of the Cerulli Edge, published byglobal analytics firm Cerulli Associates.

While the Boston-based firm “strongly agrees” with the intentionto raise financial advisors’ standard of care and protectretirement investors from conflicts of interest, the rule’simplicit belief that employer-sponsored plans are the optimalplace for retirement savers may have unintendedconsequences as investors seek to convert accumulated savings toincome in retirement.

“The limitations of the defined contribution platform prevent itfrom being a suitable vehicle for (retirement) income,” analysts atCerulli write.

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Nick Thornton

Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.