- The Small Account Problem
- RCH Portability Services
- Plan Sponsor Support
- The Missing Participant Problem
- What is a Missing Participant?
- Why Plan Sponsors Should be Concerned
- What Causes Missing Participants?
- The Magnitude of the Problem
- What Regulations Apply to Missing Participants?
- Sources of Uncertainty for Plan Sponsors
- Best Practices for Finding Missing Participants
- What to Look For in a Search Service
- Learn More About Missing Participants
- RCH's Missing Participant Search Service
- Terminating 401(k) Plans
- Participant Testimonials
- Due Diligence Material
- Contact Us
RCH Solves The Small Account Problem For Plan Sponsors
The proliferation of small balance retirement savings accounts has long plagued plan sponsors, increasing their costs, fiduciary risks and placing their participants’ retirement security at risk.
Now, with the advent of auto portability, plan sponsors no longer have to compromise. Auto portability is the routine, standardized and automated movement of an inactive participant’s retirement account from a former employer’s retirement plan to their active account in a new employer’s plan, and was conceived and developed by RCH to serve the needs of terminated participants subject to their plan’s automatic rollover provisions. Plan sponsors who adopt auto portability will ensure that their small account problem is minimized, that their automatic rollover IRA program is fiduciary-friendly, and will dramatically improve their participants’ retirement outcomes.
The Problem of Small Accounts
For plan sponsors, the small accounts left behind by terminated participants pose administrative headaches that, if left unchecked, can lead to serious problems.
As the illustration shows, small account problems work like an interlocking puzzle to drive:
- Plan administration issues, including:
- Increased plan expense
- Lost or missing participants
- Uncashed checks
- Increased risk of plan audits
- Financial wellness issues for plan participants, including:
- Higher levels of cash out leakage
- Lost earnings and excess fees
RCH Portability Services That Address the Small Account Problem
Fortunately for plan sponsors, Retirement Clearinghouse offers solutions that minimize the small account problem, by addressing its root causes.
RCH Automatic Rollover Service - More than a traditional automatic rollover, the RCH Automatic Rollover Service is the enhanced standard of care for an automatic rollover program, reducing cashouts by 52%, while helping participants receiving mandatory distributions (<$5,000) consolidate their retirement savings into their current-employer's plan. The RCH Automatic Rollover Service is also the first & only automatic rollover program to incorporate the auto portability feature. Learn more about auto portability by clicking here.
Individual RCH accountholders -- to manage your RCH account, visit the Manage Your RCH IRA Account page.