New Rule on 401(k) Rollovers Takes Effect, as Biden Sticks With Trump-Era Change
February 17, 2021 by Anne Tergesen
The Labor Department said late last week that it will build upon a Trump administration regulation governing advice that affects the trillions of dollars in retirement accounts, rather than replace it.
The measure, which goes into effect Tuesday, will cause many rollovers, in which hundreds of billions of dollars move annually from 401(k)s to individual retirement accounts, to be more heavily regulated. It also gives investors who feel they have been given bad rollover advice the right to file a lawsuit or arbitration claim.