Shuo

@ESOP Guy so if I have some 401k with fidelity and I want to roll over it to an IRA. In this case, does fidelity need to get a spreadsheet to MT? If so, how do I get fidelity to do that?

@C. B. Zeller so if someone wants to rollover their 401k with Fidelity to a vanguard IRA. Are you saying they can bring a rollover request form to a vanguard branch?

@401king Thanks for the reply! How do they get the money to IRA without effort?

@ESOP Guy sorry I was not clear. What I mean is a lot of individual participants (not necessarily missing participants) already have their own IRA's, but they are too lazy to start the 401k rollover themselves since they have to call and fill in a lot of information. Is there any service to initiate their rollover on their behalf?

Is there any service that helps clients rollover their 401k's to IRA on their behalf? A lot of people don't want to do it themselves.

I recently started a company in the 401(k) space. I am looking for an advisor with extensive experience dealing with the recordkeepers and rollovers. Please let me know if you are interested. My email is jiao.shuo@gmail.com and here is my linkedin profile https://www.linkedin.com/in/shuojiao/

I have heard more and more about the DOL audit and a plan sponsor could be deemed to have breached their fiduciary duty under the plan if DOL does not think you have tried hard enough to find your missing participants. My question is: 1. Should this be on the top of the mind for plan sponsors? 2. Is there any existing solutions to help you find missing participants?

@Larry Starr thanks for the reply and those are good questions! Here is the background: I heard from one of my financial advisor friends that there are a lot of orphaned 401k's, so much that a bill called "Retirement Savings Lost and Found Act of 2020" was just introduced, which says 30% of employees have left their retirement accounts with previous employers. I'm a startup founder so I became interested in knowing more about this problem and whether this will impact me or any employer in general. So when I say problem, I meant "will it be a burden for the employers if their former employees left behind their 401k's?" The burden can be financial burden (fees etc), administrative burden or any burden that I am not aware of. Or if most of the work is done by admin service/consultants, is it a problem for them?

@david rigby that's an interesting reason for encouraging distributions! Other than that, would you say keeping former employees' 401k is generally not a pain point for employer?

@Lou S. that makes sense. In that case, shouldn't the employer try to encourage the former employees to rollover? Is there any service to help the employer do that? Or is the charge not that much and the employer just does not bother?

@MWeddell thanks for the detailed reply! Do you know if employers still have to pay fees for the former employees' plans?

David, "we" is "the employer" here

I'm new to this and I heard that when people leave a company, they tend to leave their 401k behind. Is it a big problem for the employer to keep all those orphaned 401k's? If so, how should we encourage people to rollover their 401k when they leave? Thanks!