The Definitive Guide to 401k Consolidation

What is 401(k) Consolidation?

Put simply, 401(k) consolidation occurs when two or more qualified retirement savings accounts are combined into an active 401(k) account, typically with a current employer. This is accomplished by way of a 401(k) plan roll-in, which is the transfer of a qualified retirement plan balance of an active 401(k) participant from a previous employer's plan (or IRA) into their current-employer's plan. Consolidating retirement savings saves participants time & money, reduces their propensity to cash out, and promotes financial wellness. For plan sponsors, consolidation increases average plan balances, which tends to reduce plan expenses.

Useful Informational Links on 401(k) Consolidation:

Research:

• Actionable Insights for America’s Mobile Workforce
• Assessing the Ongoing Impact of a Program of Retirement Savings Portability

Regulatory Information:

• Verifying Rollover Contributions to Plans (IRS)
• Revenue Ruling 2014-09 (IRS)
• Revenue Procedure 2016-47 (Waiver of 60-Day Rollover Requirement, IRS)
• Rollovers of Retirement Plan and IRA Distributions (IRS)
• Rollover Chart (IRS)
• Auto Portability Advisory Opinion 2018-01A (DOL)
• Auto Portability Prohibited Transaction Exemption 2019-02 (DOL)

Articles:

• Every Dollar Saved for Retirement Matters -- So Save More By Avoiding Cash-Outs & Consolidating 401(k) Accounts
• Don’t Relegate Lost & Missing Accounts to the Lost & Found—Consolidate Them in the Retirement System
• 401(k) Portability in Four Movements
• A Successful Strategy for 401k Plan ‘Roll-Ins’
• Are You All-In for a 401k Roll-In?
• Let a roll-in help increase your retirement income
• Consolidating Gains from a 401k Portability Program
• Study: Here's one way to slow 401(k) plan leakage
• From Tired to Inspired: A Roadmap for 401k Roll-ins
• Don’t become a 401(k) DIY horror story
• 401(k) consolidation: What every plan sponsor should know
• 3 New Year’s Resolutions for 401k Plan Sponsors

Online Resources & Tools:

• EFAST2 Database Filing Search Lookup (to access as part of qualified plan verification, DOL)
• Do-it-Yourself Roll-In Chart

Videos:

• A Plan Sponsor's Guide to Supporting Roll Ins
• Looking Ahead - A Roadmap for 401(k) Roll Ins

RCH Services that Facilitate 401(k) Consolidation:

• RCH Managed Portability Service
  • Assisted Roll-In (for active participants)
• RCH Auto Portability Service
  • Participating Recordkeepers

To learn more about all of RCH’s 401(k) consolidation and participant search services, call (866) 827-9608, email sales@RCH1.com, or visit our RCH Portability Services page.