Moving 401k funds just got easier
Posted on . 1 min read
Moving your 401(k) can be a massive headache. 🤒
🍀🍀🍀 Luckily, it just got easier thanks to a huge move from Fidelity Investments, Vanguard, and Alight Solutions 😮
Three of the biggest retirement account providers recently entered a portability agreement to make it easier to switch accounts after you switch or move jobs 🏃♂️♻
15 million people have less than $5k in their 401(k) accounts when they change jobs 📈 💰
Over half of these individuals just cash out rather than move their retirements funds — this is a big no-no. But moving funds is time consuming and difficult, so many people don't think it's worth the pain 😥
The companies want to make it easier for people to transfer so they don't cash out, which can be a costly mistake.
How does it work?
🗓 The portability program is going live in April. From then on, automatic transfer will be the default option.
Xillion has recommended retirement account transfers since day 1, so this is great news to see. But transferring accounts is only a first step.