IRA Rollovers Are No ‘Slam Dunk’ Under DOL Rule


No matter what politicians in Washington, D.C., decide to do next with the Department of Labor’s new fiduciary rule, planning experts see at least one legal wrinkle as likely to survive.

By the rule’s very definition of what it means to be a fiduciary, advisors are going to need to closely review how they treat rollover IRAs when clients leave an employer’s 401(k) plan or retire.

At Heron Financial Group in New York, which manages $300 million, president David Edwards says he expects implementation of the DOL rule to raise awareness by investors of their rollover options.

As a result, he’s exploring a host of new software services coming to market promising to automate his indie RIA’s longstanding rollover review process.

“We think that taking advantage of new technology in this area is going to be increasingly important for a growing firm like ours – it’s going to help us remain in a strong position to keep up with the rising demand for rollover advice,” Edwards says.

One of the software service providers he’s checking out is FeeX. Last month, the New York-based tech developer rolled out an advisor-enhanced service platform to review IRA transfers and 401(k) rollovers. “It’s certainly true that the DOL rule now requires advisors to offer prudent analysis of fees and services involved in rollover decisions,” says David Goldman, a FeeX executive.