03.12.26

Judge Vacates Biden 401(k) Rule Trump DOL Plans To Rewrite

by: Brett Samuels

A federal judge struck down the Biden administration’s 2024 fiduciary rule for retirement accounts after the Trump administration stopped defending it in court. The rule would have expanded fiduciary obligations to financial advisors handling rollovers from 401(k) and 403(b) plans into products like annuities, requiring them to meet stricter standards of care. Industry groups, including life insurers, challenged the regulation, arguing it increased liability and costs. A Texas district court agreed to vacate the rule, effectively ending it. The Trump administration’s Department of Labor plans to rewrite the regulation, signaling a shift toward deregulation and leaving future retirement-advice standards to a new rulemaking process.

Read the full article on Bloomberg Law