It’s not easy for employees to manage, track, and consolidate retirement accounts as they bounce from job to job. Due to short employment periods, workers could leave behind retirement accounts with small balances, which drop in value from fees. Novel legislation will create a national, online “lost and found” database to assist plan participants in keeping track of their retirement accounts as they acquire different jobs throughout their career.
The Retirement Savings Lost and Found Act crafts a national lost and found for retirement accounts by utilizing data employers already required to report to the Treasury Department. The legislation will also make it simpler for plan sponsors to transfer small, abandoned accounts into target-date funds rather than market funds, and request plan sponsors send uncashed, lost checks of under $1,000 to the Treasury Department so people can locate the money and continue to save for retirement.
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