First piloted in 2017, the program completed the industry’s first-ever fully automated, end-to-end transfer of retirement savings from a Safe Harbor IRA into an employee’s active retirement account. To reduce the number of participant cash-outs or abandoned savings, the RCH Auto Portability program automates the movement of an employee’s 401(k) savings account from their former employer’s plan into an active account with their current employer’s plan. Additional information on plan leakage and auto portability is also available on RCH’s website. In turn, this can result in a proliferation of stranded Safe Harbor IRAs, participant cash-outs, and forfeiture of future savings and returns. Moreover, when a participant leaves a job with less than $5,000 in their 401(k), employers can transfer small balance accounts out of the plan and into a Safe Harbor IRA, where fees can be higher. Research shows 401(k) participants with smaller balances often do not roll over retirement savings into their new plans or tax-advantaged vehicles after changing jobs. “The combination of Vanguard’s investor-centric mission and RCH’s cutting-edge auto portability program is a promising and powerful force for change, one that I hope continues to drive mainstream adoption of this critical service.” Johnson, founder and chairman of The RLJ Companies. “Our industry must safeguard against retirement plan leakage, which particularly affects Black and Brown workers and is contributing to a systemic issue of savings insufficiency in these underserved demographics,” said Robert L. “Together with RCH, we aim to help the most vulnerable plan participants combine their retirement assets, capture the vast benefits of a 401(k) plan, and enhance their overall financial wellbeing.” “As part of Vanguard’s mission to serve all investors, we have a long legacy of challenging convention and pursuing innovative solutions that help improve outcomes for millions of retirement savers,” said John James, managing director and head of Vanguard Institutional Investor Group. The service is expected to launch in mid-2022. The firm has engaged Retirement Clearinghouse, LLC (RCH)-a leading provider of consolidation services for defined contribution plans and an RLJ Companies' majority owned company-to provide plan sponsors with a new portability solution to simplify small-balance 401(k) rollovers, help more employees preserve their retirement savings, and improve their chances of investment success. VALLEY FORGE, PA (September 21, 2021)-Vanguard today announced plans to introduce an auto portability service for 401(k) sponsor clients and their participants. Find out how buying from EchoPark gets you the same benefits related to buying new and gives you that new car feels without the new car price.Service aims to help more Americans preserve and grow their retirement savings Generally, you’ll get an approximately new car that’s always up to $3,000 less than the competition. They have thousands of 1 to 4-year old cars with no reported mishaps and a clean Carfax assurance, many of which still have the original manufacturer’s warranty. EchoPark Automotive CharlotteĮchoPark Automotive Charlotte puts you first, regardless of where you are on your car shopping tour. Stop in and see Vince and Ryan!” – Freddie M. Thanks to Ryan the Salesman that worked with me and most importantly thanks to Vince who is proof that professionalism and customer courtesy are both determining factors in successful business, where customer service is a part of the equation. “The success of this establishment is mostly in my opinion due to Vince! I was not able to purchase the vehicle I was interested in, and after not being able to get clarity from the staff, Vince stepped in and handled me like a professional.
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