Commentary: Retirement plan sponsors can reap significant rewards from the automated, two-way flow of retirement savings accounts into and out of plans. This automated portability spawns important downstream benefits for sponsors but sponsors can only capture them by choosing to recycle mandatory distributions rather than continuing to dump them into an already sizable landfill of micro-balance safe harbor IRAs (see previous blog post). This article focuses on one of those benefits the decrease in plan costs obtained through the increase in a plans average account balance.
Also see: Why dump mandatory distributions in a landfill when you can recycle?
