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.