News | 06.26.19
Participants Lack Knowledge About Retirement Plan Rollovers
A survey by Financial Engines found that 42 percent of Americans between the ages of 35 and 65 who left a job where they had money in a 401(k) plan were unaware that they could leave their money in the plan. Twenty-eight percent did not know that some retirement plan distribution choices trigger tax liabilities and penalties, and 51 percent didn’t know that it is possible to move money from an individual retirement account (IRA) into a 401(k) plan. Ric Edelman, co-founder and chairman of financial education and client experience at Edelman Financial Engines, points out that 46 percent of respondents to the survey don’t know what they are paying in 401(k) fees, which could hinder their decision about what the right course of action is. In addition, 37 percent thought they did not pay any 401(k) fees.
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