Will the new administration eliminate the Department of Labor Fiduciary rule that was to have been passed in 2024 and what it means to you? 

The Trump administration could roll back the Department of Labor’s fiduciary rule that protects investors’ best interests around IRAs. 

Money that you save in a 401(k) is protected by the fiduciary protections of the Employee Retirement Income Security Act, which has been in place since 1974. But IRAs fall outside that rule because they aren’t managed by employers, and they hold more money than defined-contribution plans ($14.5 trillion versus $11.3 trillion as of second-quarter 2024, according to the Investment Company Institute). 

That’s where the DOL’s recently finalized fiduciary rule comes in. The rule requires more financial professionals to act as fiduciaries when they advise people on investments that roll over from workplace plans to IRAs. Retail investment in securities is already covered by a “best interest” regulation adopted by the SEC, but this new rule adds fiduciary duty for advice on investments in other areas, like commodities and real estate. 

The rule took effect in September, although it faces ongoing litigation challenges, and some of its requirements don’t kick in until September 2025. 

The first Trump administration unplugged an earlier fiduciary standard that had been promulgated by the Obama administration, and DOL officials have acknowledged that the new rule could face a similar fate. 

That would leave retirement investors facing potentially conflicted, suboptimal investment advice from advisors on rollovers—and less transparency on fees and costs associated with investment products.  Considering this, and for the time being, it is imperative that one seek counsel from a fiduciary rather than a broker, representative or dealer.