It may soon get easier for clients to move 401(k)s when switching jobs
Moving retirement assets with a former employer to a new plan would be easier under a new proposal from the U.S. Labor Department, according to this article on The Wall Street Journal. The proposal would require an employer to roll over the workers' 401(k) funds automatically to a tax-advantaged IRA when they resign, and the assets would remain in that account until they get hired by a new company offering a similar plan. Under the existing rules, “[t]he options for moving a retirement account are expensive and time-consuming, and it destroys retirement savings for people with small accounts,” an expert says.
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