Automatic 401(k) rollovers reduce cash-outs, research finds — but few accounts reach new employer plans

A study of automatic 401(k) rollover programs found that workers with small account balances cashed out their retirement savings less frequently when rollovers were automated. Most accounts, however, remained in temporary Individual Retirement Accounts rather than being transferred to new employer plans. The research did not specify which portability program was studied or provide the enrollment or rollover completion rates. The findings suggest automatic portability reduced immediate cash-outs but did not substantially increase transfers to active employer retirement plans.

• CNBC — Automatic 401(k) rollovers reduce cash-outs, research finds — but few accounts reach new employer plans

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