Portability Services Network may be the solution that you or your company have been waiting for. What happens when an employee changes jobs and leaves their “small balance” 401(k) plan assets with their old employer? What are the options available for the employee? What options are available for the prior employer who holds those balances in their qualified retirement plan?
There are 5.5 million employees who change jobs and employers with 401(k) plan assets of $5,000.00 or less. Unfortunately, many of those individuals normally decide to access those funds prior to reaching normal retirement age. As a result, many of those individuals will pay taxes on those funds, pay a penalty to the government for early-access to the finds, and they will deplete the accounts that were set-aside for retirement. In this session of www.WealthManagement.com‘s 401(k) Real Chat segment, Fred Barstein interviews Spencer Williams, President and CEO of the Retirement Clearinghouse to discuss the Portability Services Network. A digital hub – alternative solution – to the leakage problem that is impacting millions of American workers.
