Automatic transfers consolidating pension savings

For example, current Safe Harbor provisions guiding mandatory distributions (“Force-Outs”), require the funds to be invested in FDIC insured deposits, with no risk to principle.However, because the GAO study was conducted during the Great Recession, which featured the lowest interest rates in over 75 years, fees outpaced returns in most Force-Out IRAs.Leaving these assets in the former employer plan makes no sense and guarantees poor performance and ultimate loss of proper use of the funds.Consolidating them into a Master IRA account would insure continuity of the investment return, effective marshaling of the assets, and hopefully sustain the value of the assets while keeping pace with inflation.Participants could not withdraw the funds until age 55, and could not borrow from the account.

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The timing of the study played an important role in many of the GAO’s conclusions.In addition, key information on lost accounts may be held by different plan service providers, making integration of those accounts more complex, if not impossible.As a potential solution, Pen Checks believes the moment a person becomes a participant in any qualified plan for the first time, a Master IRA account should be established.According to the GAO about 30% of Forced-Out IRAs will be claimed within the first year, with the balance remaining unclaimed indefinitely.Of the 19 Force-Out transfer IRAs they analyzed, the GAO determined that the investment return on

The timing of the study played an important role in many of the GAO’s conclusions.

In addition, key information on lost accounts may be held by different plan service providers, making integration of those accounts more complex, if not impossible.

As a potential solution, Pen Checks believes the moment a person becomes a participant in any qualified plan for the first time, a Master IRA account should be established.

According to the GAO about 30% of Forced-Out IRAs will be claimed within the first year, with the balance remaining unclaimed indefinitely.

Of the 19 Force-Out transfer IRAs they analyzed, the GAO determined that the investment return on $1,000 would have to exceed 7.3% to keep pace with inflation and the fees charged.

If a plan sponsor could not locate a former participant, it could use the NRURB to locate their Master IRA and transfer the funds to it.

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The timing of the study played an important role in many of the GAO’s conclusions.In addition, key information on lost accounts may be held by different plan service providers, making integration of those accounts more complex, if not impossible.As a potential solution, Pen Checks believes the moment a person becomes a participant in any qualified plan for the first time, a Master IRA account should be established.According to the GAO about 30% of Forced-Out IRAs will be claimed within the first year, with the balance remaining unclaimed indefinitely.Of the 19 Force-Out transfer IRAs they analyzed, the GAO determined that the investment return on $1,000 would have to exceed 7.3% to keep pace with inflation and the fees charged.If a plan sponsor could not locate a former participant, it could use the NRURB to locate their Master IRA and transfer the funds to it.

,000 would have to exceed 7.3% to keep pace with inflation and the fees charged.If a plan sponsor could not locate a former participant, it could use the NRURB to locate their Master IRA and transfer the funds to it.

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