Spencer Williams

Technology innovation has made it easier for job-hopping working Americans of all ages to seed their nest eggs with portable savings.

These popular savings vehicles aren't designed to keep 401(k) balances subject to automatic distributions in a safe harbor over the long haul.

Amid cash-outs, stranded plans and suboptimal investments, a SECURE 2.0 provision runs the risk of expanding asset waste in the proverbial 401(k) landfill.

Roughly $1.6 trillion in savings would be preserved in the U.S. retirement system over 40 years if auto portability were adopted nationwide.

Sharp increases in 401(k) account withdrawals spell trouble for plan participants, sponsors and recordkeepers.

Authors of a recent study suggest educating employees about the consequences of premature withdrawals and allocating contributions to "sidecar" accounts.

Up to 63% of Black Americans and 57% of Latinos cash out accounts within a year of a job change.

Expanding auto portability to a larger population can significantly reduce leakage of retirement plan assets and help shore up savings.

If auto portability is broadly adopted across the U.S. over the course of 40 years, an additional estimated $1.5 trillion in savings will be preserved.

A more thoughtful approach to saving will help participants who rely on the defined contribution model stretch their dollars into life after work.