Will 401k Auto-Portability Become A Cure-All Or A Fiduciary Headache?
Of Counsel Michelle Capezza spoke to Fiduciary News in an article discussing the implementation of auto-portability, effective January 1, 2024, under the SECURE 2.0 Act.
Michelle commented, “Last week, Retirement Clearing House released key findings from its auto portability simulation which modeled the adoption of auto portability within the US defined contribution retirement plan system over a 40-year period. Their key findings included that there will be significantly more job changers with small balances subject to mandatory distribution rules, auto portability services will dramatically reduce cashout leakage, and they will help to grow incremental wealth as well as retirement plan participation of minority populations.”
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