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Rollovers

All articles tagged with #rollovers

personal-finance1 month ago•3 min saved

401(k) Rollovers Dominate IRA Growth, Not Direct Contributions

IRAs hold about $19.2 trillion while 401(k)s hold $10.1 trillion, and most IRA assets come from rollovers of workplace plans rather than new contributions (2023 saw $682B rolled into IRAs vs $89B in direct contributions). Aging baby boomers and the desire to consolidate accounts are driving rollover growth, with Cerulli projecting hundreds of billions more in rollover money in the coming years. While rollovers can simplify finances and access a wider range of investments, they forego some 401(k) protections and aren’t always the best move for every saver; keeping some funds in a 401(k) can still be prudent.

via CNBC|

#401k #contributions #ira

finance2 years ago•3 min saved

"Proposed Labor Department Rules Aim to Enhance Investor Protections for $600 Billion in IRA Investments"

The U.S. Department of Labor is expected to introduce new rules aimed at increasing protections for investors who roll over more than $600 billion a year to Individual Retirement Accounts (IRAs). Currently, IRAs hold about $11.5 trillion, almost double the amount in 401(k) plans. While rollovers offer advantages, such as flexibility, they often come with higher fees and may not be subject to a fiduciary standard of care. The proposed Labor Department rule, which is currently under review, seeks to raise the bar on rollover advice provided by financial advisors and close loopholes, potentially subjecting all rollovers to the highest level of investor protections. This could include requiring advisors to act solely in investors' best interests and allowing investors to sue for bad rollover advice. The rule is expected to take at least two years to take effect.

via CNBC|

#fiduciary #finance #iras