Why does Retirement Clearinghouse (RCH) have my retirement savings?
People are sometimes surprised to learn that their retirement savings from a previous employer's plan have been transferred to an IRA account with Retirement Clearinghouse (RCH).
The Automatic Rollover
In most cases, this is the result of a process known as an "automatic rollover" -- where your former employer has chosen to automatically move your funds out of their retirement savings plan because 1) your balance was below $5,000 or 2) the plan was terminated. Automatic rollovers are made possible by federal legislation passed by the 107th Congress in 2001, known as the Economic Growth Tax Relief Reconciliation Act, or "EGTRRA.'
The automatic rollover process typically works as follows:
- Plans that have “automatic rollover” provisions will select Retirement Clearinghouse (or another third party) as their automatic rollover provider.
- Periodically, plans will determine those participants who are eligible for an automatic rollover -- usually former employees who have balances less than $5,000.
- As part of the automatic rollover process, eligible participants will first be notified by mail about the pending rollover, and provided with required disclosures, instructions and adequate time to take control of their funds. This period of time is typically 30 to 60 days.
- If a participant takes no action during the notification period, their retirement savings are automatically rolled over to an IRA with Retirement Clearinghouse.
- By statute, the former participant’s savings are automatically invested in a default investment fund designed to protect principal, to deliver a reasonable rate of return, and to provide liquidity.
Take Control of Your Retirement Savings
If you've learned your retirement funds are with RCH, relax -- we can help you take charge of your retirement savings, providing you with the education and assistance you need to make the choice that's right for you.
If you've learned that your funds are with RCH, you can select from three options to manage your RCH IRA account:
- On the web, by accessing our online portal, myRCH1 (requires registration step for access)
- Using forms, available online
- Contacting the RCH Service Center for assistance with your options. We’re open Monday - Friday, 8a-7p EST, at 1-888-600-7655
Click here to access the three options to manage your RCH IRA account.
You may also complete and submit the Quick Connect form below, and an RCH representative will contact you.