Labor Department 401(k) Advice Rule Paused by Texas Judges (2)

The Labor Department’s rule classifying more retirement advice providers as fiduciaries hit another major roadblock when a second Texas federal judge issued an order temporarily blocking the rule from taking effect.

The American Council of Life Insurers and other trade groups challenging the 2024 rule are “virtually certain” to succeed in showing the rule conflicts with the Employee Retirement Income Security Act and exceeds the department’s regulatory authority, Judge Reed O’Connor of the US District Court for the Northern District of Texas said in a July 26 order.

The rule overrides the “important distinction” between insurance agents and investment ...