Large providers team up for auto portability

Ary Rosenbaum - The Rosenbaum Law Firm P.C.
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Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Fidelity Investments, Vanguard, and Alight Solutions have teamed up with Retirement Clearinghouse, LLC (RCH) to create a consortium of workplace retirement plan recordkeepers, Portability Services Network, LLC, to accelerate the nationwide adoption of auto portability.

The idea is that plan participants would have their account balances automatically move to their new retirement plans. The hope is that automating the process of moving 401(k), 401(a), 403(b), and 457 account balances from plan to plan when workers change jobs will help limit cash-outs and preserve trillions of dollars in savings in the U.S. retirement system. More importantly for the providers, it will help them keep more assets.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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