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 plan’s average account balance.

Also see: Why dump mandatory distributions in a landfill when you can recycle?

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