Rolling retirement assets out of employer-sponsored plans and into IRAs can potentially place hard-saved dollars at risk. Alight analyzed 401(k) rollover behavior of plan participants over a three year period to provide a benchmark of rollover activity for large, institutional plans. The paper also dives into four fundamental questions employers should be considering:
- Should plan sponsors monitor the IRA rollovers from their plans? Why or why not?
- What are “good” reasons for people to roll 401(k) balances into IRAs?
- How can plan sponsors know if their participants are subject to undue influence or steerage with respect to rollover decisions?
- Who is responsible for assessing rollover behavior?