Fred Reish Comments on IRA Rollovers With Morningstar

In “The Hidden Costs of IRA Rollovers,” Morningstar turned to benefits and executive compensation partner Fred Reish for commentary on the decision of whether to roll over a 401(k) to an individual retirement account (IRA) when retiring or changing jobs.

“As courts have said, the ERISA fiduciary standard is the highest known to the law,” explained Reish. “As a result, advisers will need to engage in objective and professional analyses in order to determine if a rollover recommendation is in the best interest of a plan participant.”

Regarding how advice is subject to the Securities and Exchange Commission’s best interest standard once funds have been rolled over to an IRA, Reish added, “It’s not a fiduciary level of care.”