DOL fiduciary rule takes effect June 9

The Department of Labor has announced the applicability date of the final regulation, defining who is a "fiduciary" under ERISA, is June 9th while some exemption conditions will be delayed until January 1, 2018. As shared prior, under the new rule, a fiduciary is someone who makes a "recommendation" to a plan, plan fiduciary, plan participant or beneficiary, or IRA owner for a fee or other compensation, direct or indirect, regarding, among other things, the purchase of investment products or services, whether to take a distribution from the plan, and whether a plan distribution should be rolled over to an IRA. A "recommendation" is "a communication that, based on its content, context, and presentation, would reasonably be viewed as a suggestion that the advice recipient engage in or refrain from taking a particular course of action."

A link to Field Assistance Bulletin No. 2017-02, released May 22, 2017 explains the temporary enforcement policy:

https://www.dol.gov/agencies/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/2017-02

If you sponsor a 403(b) and/or a 457(b) plan for public school or municipal employees, i.e., your plan is not subject to ERISA, the new rule will apply to investment advice given to participants in connection with rollovers to IRAs or ERISA plans.

Visit our ConnectNow page for more information on these and other topics.

If you have any questions email us at support@planconnect.com or call us at (800) 923-6669, Monday through Friday from 9:00 am to 5:00 pm ET.

PlanConnect, LLC is a wholly owned subsidiary of AXA Distribution Holding Corporation, an indirect subsidiary of AXA Financial, Inc. PlanConnect® Connect2Remit®, Connect2Comply®, Connect2Maintain®, and Connect2Achieve® are registered service marks of AXA Distribution Holding Corporation. PlanConnect may not be available in all states. AXA Financial, Inc. and its family of companies do not provide tax advice. Please consult with your tax advisor regarding your particular circumstances. Each company is affiliated. AXA Distribution Holding Corporation and AXA Financial, Inc. are located at 1345 Avenue of the Americas, New York, NY 10105, (212) 544-1234.

PlanConnect, LLC is located at 100 Madison Street, Syracuse, NY 13202, (800) 923-6669.

This message is not intended to convey legal or tax advice, nor can it be used to avoid the payment of income taxes or penalties assessed by any US tax authority.