Benefits Blast

On February 13, 2023, a Florida federal district court (the Court) partially invalidated the U.S. Department of Labor’s Employee Benefit Security Administration’s (the Department’s) interpretation of its rule that described when a financial adviser who helps participants roll over some or all of their 401(k) assets into an individual retirement account (IRA) or an annuity is providing investment advice and acting as a fiduciary under the Employee Retirement Income Security Act of 1974, amended (ERISA).

The IRS, in Notice 2018-74, has updated the model notices that plan administrators must provide to participants who receive eligible rollover distributions from a tax-qualified retirement plan.

In a major change from past practice, at the end of August 2016, the Internal Revenue Service (IRS) issued Revenue Procedure 2016-47, providing significant relief to the rollover rules under the Internal Revenue Code