12.11.18
Experts Optimistic Over Auto-Portability Proposal
by: Brian Croce
Retirement Clearinghouse LLC (RCH) is close to receiving approval from the Department of Labor (DOL) to expand its auto portability program. Under the program, a participant with less than $5,000 in a 401(k) plan who changes jobs and does not move his or her money can transfer the account savings into an IRA. The IRAs are then typically invested in either a money market fund or certificate of deposit. RCH has developed a "locate, match, and transfer" technology that involves periodic queries of cooperating record-keepers' systems to ascertain if the IRA owner has become a participant in an individual account plan through re-employment and then effects a transfer of funds from the individual's IRA to that new plan, according to a DOL advisory opinion. DOL is expected to issue a final decision on the exemption, which will only apply to RCH, after a comment period ends on Dec. 24.
Read the full article on Pensions & Investments