Here is How 401K Advisors will Benefit from Newly Proposed DOL Rules

Advisors could benefit from the proposed MEP regulations by being able to aggregate new and existing clients in the same geographic area into one common 401(k) plan.

In October the DOL expanded the rules under which small businesses can aggregate participants into a common workplace retirement plan. This expansion reduces the restrictions around which business can claim to have a common bond. The new proposal will allow businesses to claim to have a common bond based on location and not just common business line.

This geographic collectivization is a potential boon to advisors by offering MEPS to employers to help reduce the plan associated investment and administrative costs. This pathway allows advisors to prospect for new business by focusing on local communities and working with the local chamber of commerce. Th bottom line is that it should allow for more opportunities for advisors and should be looked upon as a positive development.

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