Why upcoming IRS rollover guidance is likely to disappoint advisors
New IRS guidelines may ease some of the tedium associated with rolling employer retirement plans to individual retirement accounts, but advisors may be disappointed that the changes don't go far enough. Rolling over assets from an employer retirement plan, such as a 401(k), can reduce fees and consolidate retirement plans into one place, among various benefits. But complex processes can serve as impediments to completing rollovers. The IRS and U.S. Treasury Department issued rollover guidance in August and sought public comments through Oct. 23. The guidance was a notice including sample forms and proposed procedures and protocols for standardizing the rollover process that are optional for sponsors of plans. Some advisors aren't fully satisfied with the guidelines because they think the rollover process could be fully digitized — eliminating paper checks in favor of electronic funds…
