"Boosting 401(k) System Through Policy Changes and Portability"
Billions of dollars are lost annually from the U.S. retirement system due to 401(k) plan "leakage" when workers cash out their accounts, with about 40% of job switchers doing so each year. Recent policy changes, including Secure 2.0 legislation and a new "auto portability" initiative, aim to reduce this leakage by making it easier for small balances to automatically follow workers to their new jobs, preventing cash-outs or rollovers to IRAs. Additionally, a "lost and found" for old retirement accounts is in the works to help workers locate and access forgotten benefits.
