February 22, 2022

Insurance Company Responsibilities and Practices Under PTE 84-24 and PTE 2020-02



The Department of Labor’s (DOL) expanded interpretation of fiduciary status for recommending Plan-to-IRA rollovers and IRA-to-IRA transfers means that many more insurance agents will be fiduciaries for making those recommendations — and, as such, will need the protections of a prohibited transaction exemption (PTE) due to their compensation, both cash and non-cash. PTE 2020-02 provides the most flexibility, but requires that insurance companies be “co-fiduciaries.” PTE 84-24 is more limited, but imposes less of a burden on insurance companies. 

This program discusses the new fiduciary interpretation, the differences between the exemptions, the decisions being made by insurance companies, and the new rules that the DOL is working on, which we expect will be released later this year.

Questions? Please contact Heather Sanders or call +1 215 988 1127.

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