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  8. 401(K) Plans: Labor and IRS Could Improve the Rollover Process for Participants

401(K) Plans: Labor and IRS Could Improve the Rollover Process for Participants

File(s)
GAO_401K_Plans.pdf (3.04 MB)
Permanent Link(s)
https://hdl.handle.net/1813/79363
Collections
Federal Publications
Author
Government Accountability Office
Abstract

401(k) plan participants separating from their employers must decide what to do with their plan savings. Many roll over their plan savings to IRAs. As GAO previously reported, there is concern that participants may be encouraged to choose rollovers to IRAs in lieu of options that could be more in their interests. Because little attention has been paid to the distribution process, GAO was asked to identify challenges separating plan participants may face in (1) implementing rollovers; (2) obtaining clear information about which option to choose; and (3) understanding distribution options. To answer these questions, GAO reviewed relevant federal laws and regulations, interviewed federal officials and industry experts, conducted a nongeneralizable survey of plan sponsors, and made undercover calls to 401(k) plan service providers to determine what information is provided to plan participants.

Date Issued
2013-03-01
Keywords
401(K) plans
•
retirement savings
•
rollovers
Type
government record

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