About Retirement clearinghouse
Retirement Clearinghouse: Moving Retirement Savings Forward with Auto Portability
Retirement Clearinghouse is a leading provider of retirement savings solutions that help individuals and employers manage their retirement accounts more efficiently. The company's flagship product, auto portability, is a fiduciary-friendly automatic rollover program that helps employees consolidate their retirement savings when they change jobs.
Auto portability is designed to address the problem of stranded 401(k) accounts, which occur when employees leave their jobs and fail to roll over their retirement savings into a new plan or IRA. According to Retirement Clearinghouse, there are currently over 24 million stranded accounts in the US with an estimated value of $1.5 trillion.
Auto portability works by automatically transferring an employee's 401(k) balance from their former employer's plan to their new employer's plan or IRA. This process is facilitated by Retirement Clearinghouse's proprietary technology platform, which uses advanced algorithms and data analytics to match employees with eligible plans based on factors such as account balance, age, and investment options.
The benefits of auto portability are numerous for both employees and employers. For employees, it means they can avoid costly fees associated with maintaining multiple accounts and potentially earn higher returns by consolidating their investments into one account. For employers, it means they can reduce administrative costs associated with managing multiple plans and improve compliance with ERISA regulations.
In addition to auto portability, Retirement Clearinghouse offers other solutions designed to help individuals manage their retirement savings more effectively. These include:
- Roll-in services: Allows individuals to consolidate multiple retirement accounts into one account.
- Cashout avoidance services: Helps individuals avoid cashing out small balances when changing jobs.
- Missing participant location services: Helps employers locate missing participants in order to distribute benefits owed.
Retirement Clearinghouse has received numerous accolades for its innovative solutions in the retirement industry. In 2020 alone, the company was named a finalist for "Most Innovative Investment Solution" at the Pension Bridge Annual Awards and "Best Innovation - Technology" at the WealthManagement.com Industry Awards.
Overall, Retirement Clearinghouse is committed to helping Americans save more effectively for retirement by providing innovative solutions that make it easier for them to manage their accounts throughout their careers. With its focus on fiduciary responsibility and cutting-edge technology platform, it is well-positioned as a leader in this important industry segment.