The Department of Labor reinstated a 5-part test used to determine who is a fiduciary for qualified retirement plans. This test, first used in 1975, replaces the “retirement standard rule” put in place in 2024. Under the 5-part test, only advisers who offer investment advice for a fee on a regular basis for purposes of the employee making investment decisions are considered fiduciaries. Why does it matter? Fiduciaries can be personally liable for losses and penalties. An employer typically is a fiduciary for many purposes when having a qualified retirement plan but can delegate managing investments. #IdeaoftheDay
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