DOL Rollover Requirements Under PTE 2020-02 Remain in Effect After Federal Courts Strike Down 2024 Fiduciary Rule

In November 2025, the Trump administration’s Department of Labor withdrew its defense of the Biden-era 2024 Fiduciary Rule (formally, the Retirement Security Rule). This month, federal district courts in Texas finalized that outcome: on March 12, the U.S. District Court for the Eastern District of Texas vacated the Rule, and on March 17, the U.S. District Court for the Northern District of Texas did the same – officially removing the regulation from the Code of Federal Regulations.

Since these decisions, our team has received a wave of questions from clients asking: “Does our firm still have to complete the rollover analysis and disclosure process for each rollover we recommend to clients?”

Yes.

The vacatur applies only to the 2024 Fiduciary Rule and its associated 2024 amendments to existing prohibited transaction exemptions. DOL Prohibited Transaction Exemption 2020-02 – originally finalized in December 2020 during the first Trump administration – remains in full force and effect. PTE 2020-02 is what created the core rollover compliance obligations your firm has been following, and those obligations have not changed:

• Performing a best interest analysis prior to making a rollover recommendation;
• Providing the client with a written disclosure summarizing the specific reasons why the rollover is in their best interest, along with a description of services, fees, and material conflicts of interest;
• Acknowledging fiduciary status in writing to the client; and
• Conducting an annual retrospective review of the firm’s compliance with PTE 2020-02, documented in a written report certified by a senior executive officer.

A Note on Future Rulemaking

Earlier DOL regulatory guidance had suggested the Department might propose a revised fiduciary rule as early as May 2026. However, as of this week, the current administration has hinted that it may not issue a replacement rule. Our team is closely monitoring any the situation and will keep you informed as the regulatory landscape develops.

In the meantime, your firm’s PTE 2020-02 compliance program should remain fully operational. Please do not hesitate to reach out to your compliance team at Stark & Stark with any questions.