Help participants avoid an inappropriate IRA rollover

Description

Abstract: The Government Accountability Office recently found that much of the information touting the benefits of IRA rollovers isn’t always objective. This prompted the Financial Industry Regulatory Authority (FINRA) to alert investment advisors and brokerage firms that it’s investigating inappropriate IRA rollover solicitations to 401(k) plan participants nearing retirement. In turn, plan sponsors should be aware of employees who may be persuaded to roll over assets into expensive or poorly designed and managed IRAs. This brief article highlights FINRA’s findings and steps sponsors can take to help participants.