Fate Of Fiduciary Rule Is Uncertain, But Count On Us
Published Thursday, February 16, 2017 at: 7:00 AM EST
On February 3, 2017, President Trump issued an executive order on the controversial new "fiduciary rule," authorizing further review. It was scheduled to take effect on April 10, 2017. On March 2, 2017, the Department of Labor (DOL) extended the comment period for 60 days.
The new rule would require financial advisors and their firms to uphold certain fiduciary standards when they are compensated for investment advice and recommendations relating to retirement accounts such as 401(k)s and IRAs. Essentially, advisors and firms would have to represent that they're putting the best interest of clients before their own.
This "best interest" provision would have had to be included in a written contract that would say that the advice being offered is based on a client's particular needs.
After much discussion, the modified final rule covered some assets thought to have been excluded, such as variable annuities, and eliminated certain requirements on fee projections.
Although the ultimate fate of the rule is now up in the air, some firms have already implemented changes relating to the rule and are likely to stick with them.
Rest assured, regardless of how this plays out, our firm has your best interest at heart. Don't hesitate to contact us if you have any questions.
This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.
An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.
Contributions to a Roth IRA are not tax deductible and these is no mandatory distribution age. All earnings and principal are tax free if rules and regulations are followed. Eligibility for a Roth account depends on income. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).
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