Trend in Terminated Employees Keeping 401k Funds Invested

According to a 2019 study (The “2019 Universe Benchmarks” report) by Alight Solutions, a large number of participants are not liquidating their accounts and others are choosing to transfer them to IRAs or other qualified plans.

Following is some information found in the report.

  • 32% of separated participants during the first nine months of 2018 kept their balances in the plan as of year-end.
  • Of fund that left the plan,  77% of the money was transferred to IRAs.
  • Older workers tended to to transfer the funds to an IRA.
  • Whereas, 39% younger workers preferred to transfer their funds to IRAs, and 27% transferred their balances to another plan (the solo 41k fall s under this plan category).
  • Older workers, however, much preferred an IRA rollover. 89% selected rolling over balances into an IRA, while  3% rolled over to a different plan.

 

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

MENU