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404(c) Risk in Recommending Annuity Provider?


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Guest Kathleen Toth
Posted

Is there a 404© risk to an employer if the employer recommends that retiring employees roll their plan distribution to a particular company's IRA annuity program? It would seem to me that the employer is assuming SOME sort of liability if they endorse a particular company in communications given to employees at the time that they are receiving the usual information packets and notices at the point of separation from service. Is it safer for the employer to make no recommendation or to provide information on several IRA companies rather than one company?

Posted

Sounds like the ER is giving "investment advice". If you think that puts the ER at risk, and I do, then be careful.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

  • 2 weeks later...
Guest Kathleen Toth
Posted

What sort of problem do you think it is?

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