Hundreds of billions of dollars of 401(k) assets that would otherwisehave been rolled over to IRAs will stay in plan upon implementationof the Department of Labor’s fiduciary rule,according to a projection from Cerulli Associates.

The rule, which service providers and advisors will have to befully compliant with come January 1, 2018, makes any advice to rollassets over to an IRA a fiduciary recommendation subject to theBest Interest Contract Exemption.

Advisors will be expected to document why the recommendation toroll assets out of an employer-sponsored plan, where investors maybenefit from cheaper institutional shares of investments, to an IRAwith more expensive retail shares of investments, is in aninvestor’s best interest.

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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.