Consolidation Corner

Account consolidation time-consuming, expensive for employees

Posted by Spencer Williams on Mar 31, 2016 11:04:11 AM

As has happened so many times before, the Baby Boomer generation is once again drawing attention to an unmet need: a seamless way to consolidate their collection of retirement accounts into a single account, which is a necessary step to creating a sturdy retirement plan. Much has been written about how sponsors can improve both their plans’ overall health and their participants’ retirement outcomes by embracing roll-ins; nonetheless, the account-consolidation process remains time-consuming and expensive for most participants.

 

According to a 2015 Boston Research Technologies study of mobile workforce behaviors, the roll-in process takes an average of five to six weeks from beginning to end. Some participants have to wait longer—13% responded that their roll-in took one to two months to complete, and 27% stated the process lasted over two months.

 

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Topics: EBN, Auto Portability, 401(k) Consolidation, Retirement Plan Portability, Retirement Savings Portability, How-To

DC Plan Termination Video Series Part 3: Five Criteria for Selecting a Services Provider

Posted by Michael Wilder on Feb 25, 2016 10:30:00 AM

Retirement Clearinghouse (RCH) is pleased to offer a three-part series of educational videos on plan terminations, presented by Mike Wilder, RCH’s Vice President of Client Services. These videos are intended to provide plan sponsors with a basic understanding of key plan termination process steps, the common mistakes that are made by plan sponsors, and the key criteria for selecting a plan termination services provider. We hope you’ll find these videos interesting & informative!    

 

 
 
 
 
 
 
 

 

 

DC Plan Termination - Five Criteria for Selecting a Services Provider

Terminating a retirement plan takes a lot of work, a lot of planning and requires specialized skills.  Not surprisingly, most fiduciaries choose to outsource plan terminations to service providers.

Selecting an outsourced provider is a critical decision. To help simplify the process we suggest using the five criteria below.

 

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Topics: Safe Harbor IRA, Automatic Rollovers, How-To, Plan Termination

DC Plan Termination Video Series Part 2: Common Mistakes Plan Sponsors Make

Posted by Michael Wilder on Feb 19, 2016 12:57:09 PM

Retirement Clearinghouse (RCH) is pleased to offer a three-part series of educational videos on plan terminations, presented by Mike Wilder, RCH’s Vice President of Client Services. These videos are intended to provide plan sponsors with a basic understanding of key plan termination process steps, the common mistakes that are made by plan sponsors, and the key criteria for selecting a plan termination services provider. We hope you’ll find these videos interesting & informative! 

 

For more information, contact a Retirement Clearinghouse sales representative at sales@RCH1.com, or call us at (866) 827-9608.


 

 
 
 
 
 
 
 
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DC Plan Termination - Common Mistakes Plan Sponsors Make

 

Terminating a retirement plan is complicated. The importance of having a well thought out plan in place before beginning the plan termination process is imperative, because making mistakes can be costly. To better understand why plan sponsors were making mistakes in qualified plan terminations the IRS Employee Plans Compliance Unit conducted a “Termination Project” in 2011. Over 75% of the sampled sponsors made errors!

 

 

So what kind of errors did plan sponsors make?

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Topics: Safe Harbor IRA, Automatic Rollovers, How-To, Plan Termination, Common Mistakes

DC Plan Termination Video Series Part 1: 1 Project, 5 Phases

Posted by Michael Wilder on Feb 12, 2016 2:31:56 PM

Retirement Clearinghouse (RCH) is pleased to offer the first educational video of a three-part series on DC plan terminations, presented by Mike Wilder, RCH’s Vice President of Client Services. These videos are intended to provide plan sponsors with a basic understanding of key plan termination process steps, the common mistakes that are made by plan sponsors, and the key criteria for selecting a plan termination services provider. We hope you’ll find these videos interesting & informative!    

 

For more information, contact a Retirement Clearinghouse sales representative at sales@RCH1.com, or call us at (866) 827-9608.


 

 
 
 
 
 
 
 
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DC Plan Termination – 1 Project, 5 Phases

 

Terminating a retirement plan can be daunting. There is a lot to do and if it’s not done correctly, it will generate even more “to dos”. To minimize the sense of being overwhelmed break down a plan termination into five smaller phases.

 

 

Phase 1: Planning & Preparation

As with any project, good planning usually leads to good results. After the project is planned and the timeline is established, the first thing to do is amend the retirement plan. Things to remember in the plan amendment:

  • Establish a plan termination date
  • Include all changes in the law or plan qualifications that will be effective on the termination date
  • Cease plan contributions
  • Provide full vesting of benefits for all affected employees
  • Authorize distribution of all benefits in accordance with plan terms as soon as administratively feasible

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Topics: Safe Harbor IRA, Automatic Rollovers, How-To, Plan Termination

DIY Plan-To-Plan Portability Is Harder Than You Think

Posted by Spencer Williams on Feb 17, 2015 8:30:00 AM

Have you ever tried to fix a leaky kitchen faucet yourself? If so, the task probably seemed simple at the outset. However, if you’re not an experienced plumber, you may have inadvertently compounded the small problem of a leak — perhaps by over-tightening a nut, pinching the washer, stripping the threads, or worst of all, splitting the pipe — and unintentionally made the situation worse, as well as expensive to fix.

 

Don’t feel bad; you’re not alone. Some tasks look easy, but actually require more expertise and assistance than we first imagine, and in many cases we would be better off “calling the plumber” sooner rather than later. Leaving your 401(k) behind or trying to move it by yourself can be like trying to fix that leaky faucet — a small nagging problem that over time ends up costing you a surprising amount of money. Transferring a retirement savings account balance between employer-sponsored plans is more complicated than it may appear, and for most people is not a do-it-yourself (DIY) job.

 

To get an idea of just how convoluted it could be, take a look at this diagram of the Do-It-Yourself Roll-In flow and steps to be taken. Talk about complicated and time-consuming!

 

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Topics: EBN, Auto Portability, 401(k) Consolidation, Retirement Plan Portability, Retirement Savings Portability, How-To

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