401(k) cash out leakage blog posts


May
02
2016

What the DOL's Fiduciary Rule doesn't say

The Department of Labor's much-anticipated Fiduciary Rule is ushering in many changes across the retirement services landscape, and the new rules governing the "what, how and why" for advice at the time of a participant's job change will undoubtedly transform the rollover-to-IRA market. However, a closer reading of the Fiduciary Rule sends a clear, if unstated, signal to plan sponsors, financial advisors and record-keepers' absent a compelling reason to roll over to an IRA, keep participants invested in a qualified defined contribution plan throughout their working lives.

Apr
22
2016

For Earth Day: Consider How "Recycling" Could Apply to Our Retirement System

As we observe the 46th annual Earth Day this April 22nd, we appreciate the awareness that this event has brought to the need to protect our environment, the urgency that it is instilled in all of us, and the tangible results that have been achieved in so many important areas. Although we have much work to do, we have clearly come a long way since the "throwaway" culture that emerged following World War II.

Apr
21
2016

Five Common Misconceptions About Automatic Rollovers

Automatic rollover programs allow plan sponsors to force out of their plan separated participants with balances less than $5,000 into a Safe Harbor IRA. These programs can be quite effective at helping sponsors resolve many of the problems associated with housing small-balance accounts in-plan, such as...

Mar
30
2016

The Fiduciary Rule and Participant Transition Management

Any day now, the Department of Labor will issue the final version of the long-awaited Fiduciary Rule which will redefine the term "fiduciary" under ERISA. Much has been written about the impact on advisors and broker-dealers, given their service models to retirement plans.

Mar
15
2016

America’s Modern Throwaway – 401(k) Retirement Savings

When trying to shape our future, it is often helpful to understand our past.

Feb
01
2016

Cutting the Gordian Knot: Portability & Small Accounts

Have you ever wondered why so few participants move their old 401(k)s into their current employers' plans? Or why so many participants prematurely cash out their retirement savings accounts, regardless of taxes and penalties? Or why job-changing participants leave their savings behind only to lose track of them as if their assets for retirement belong on some remote desert island away from all their other savings?

Jan
20
2016

Four New Year's Resolutions for Retirement Savers Summary

In his 1/20/16 MarketWatch column (Four New Year's Resolutions for Retirement Savers), Retirement Clearinghouse CEO Spencer Williams offers four New Year's resolutions that all 2016 job-changers should take to heart, including...

Jan
13
2016

Washington Recognizes Need for Retirement Plan Portability Solutions

Clearly, Washington DC is now "getting it" when it comes to retirement plan portability. In November 2015, Senator Patty Murray and other influential members of Congress delivered a letter to Department of Labor Secretary Perez urging action on Auto Portability. Now, we have strong comments from President Obama in his final State Of The Union address on the need for more portable retirement savings.

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