Automatic 401(k) Rollovers Cut Cash-Outs, but Most Small Balances Still Stall in IRAs
A new analysis finds that automatic portability programs are helping reduce the number of workers who cash out small 401(k) balances when they change jobs, a long-standing leak in the U.S. retirement system. But the research also shows that most of those accounts are not making it all the way into new employer plans, instead sitting in temporary individual retirement accounts that may not deliver the same long-term benefits.
