News, Vision & Voice for the Advisory Community


Vanguard Group becomes second domino to fall in 401(k) recordkeeper detente on plan portability, and the push is on to cajole Fidelity, the DC king, to follow suit

The $8 trillion Malvern, Pa., asset manager signed a deal with Retirement Clearinghouse to address its $1.8 billion of record-kept plan assets, which suffer universally despised pension 'leakage' that drains minority-held accounts.

Author Lisa Shidler September 24, 2021 at 1:21 AM
1 Comment
no description available
Robert Johnson: “Our industry must safeguard against retirement plan leakage, which particularly affects black and brown workers.

401(k) Stories



September 25, 2021 — 3:49 PM
I agree that cashing out accounts is a huge problem for saving for retirement (see also the never ending loan cycle for some participants). However, the onus on rolling over money to an IRA is not on the participant from $1,000 to $5,000, but on the employer. The employer must establish an IRA for the participant. The issue here is that these tiny balances aren't necessarily tracked by the participant, and there can be tiny balances all over the place. The idea here seems to be from preventing multiple accounts going all over the place. Really you want participants to not look at their money as an insignificant amount and just leave it in place. And build up accounts quicker, encouraging employers to use auto enrollment and auto escalation, which would mean employees would have to opt out rather than opt-in. Also, really stress the tax consequences of an early withdrawal.

Related Moves

March 25, 2023 at 1:32 AM

Biz Briefs: Fidelity says humans beat robots, even for Gen Z • Joe Lonsdale's Opto starts signing RIA test-drivers • Vanguard launches oddly delayed fund • Wealthbox hires, and Dynasty buys

Fidelity wins Delta Airlines business with sweetener • Opto pairs-up with Riskalyze and Merchant • Moonfare raises $15 million • CAIS bucks real estate trend • Vanguard launches "curious[ly]" delayed fund • WealthBox, Dynasty, and others buy and hire.

March 8, 2023 at 3:28 AM

Biz Briefs: Schwab puts checks for $52 million in mail to robo-RIA customers allegedly misled about cash allocations • BlackRock blacklisted (again) • iShares beats NZAM-exiter Vanguard • Fidelity makes first acquisition in eight years • CFP board realizes Moms don't like CFPs

BlackRock gets Kentucky coal in stocking, and Vanguard keeps skating; iShares inches above -- by 2.8% -- Vanguard's annual net new ETF asset haul; Fidelity takes "natural next step" for stock plan business; new CFP chair outlines plans and the DOJ is set to become a major Robinhood shareholder..

January 13, 2023 at 3:01 AM

RIA recap: Bernie Clark promises to 'be there' for coming TDA-Schwab system snafus; Fidelity gets custody win; Vanguard dishes out big tax bill to investors

Schwab RIA chief petitions for 'patience' for coming merger inconveniences but 'repapering' is no culprit; Carrie Pomerantz gets Schwab board seat; Addepar wins $65 billion AUM contract.

November 3, 2022 at 1:59 AM

See more related moves

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo

White Paper Postings

Common Tags

Recent Articles

Popular Writers

RIABiz logo


About Us




RIABiz, Mill Valley, California
Copyright © 2009-2024 RIABiz Inc. All rights reserved.