The DROP has special tax treatment for public safety employees. Utilizing an Individual Retirement Account (IRA) to hold DROP assets could be detrimental to your financial welfare.
Financial advisors and sales agents employed by Credit Unions, Banks, Broker Dealers, Brokerage Firms and insurance companies sell commissioned financial and insurance products that may not be in your best interest, have multiple conflicts of interests and are not held to a fiduciary standard at all times.
Before you discuss your financial situation or sign any type of documents, you should ask the “Advisor” multiple questions to determine if any potential conflicts of interests exist, education of the Advisor, the scope of services to be provided and if the Advisor is held to a fiduciary standard at all times. If you are currently working with an advisor, it is strongly recommended that you ask these questions to determine critical information about your advisor and their employer.