In their most recent proposed regulation the Dept of Labor is suggesting the following investment options. If adopted by the Plan sponsor these options would provide an exception for the plan advisor of further liability:
The DOL believes advisors who recommend portfolios consisting of low-management-fee index funds, passively managed funds or exchange-traded funds presumptively could be treated as acting in a manner consistent with their fiduciary obligation, since these investment options “present minimal risk of abuse.”
The DOL justifies this position by noting it is “consistent with the prevailing view in the academic literature that posits that the optimal investment strategy is often to buy and hold a diversified portfolio of assets calibrated to track the overall performance of financial markets.”
Solo 401k Plan: Your Opportunity for Checkbook Control of Your Future
