One of the first topics i agree with E. Warren but she is proposing an easier method to keeping track of your 401k along with making transfers. This bill should be an easy pass imo. Thoughts/
From the article: “It’s a huge hassle to roll those old 401(k)s into a current 401(k) or into an individual retirement account…”
Except in my experience it isn’t… I rolled my old 401k into my new one a couple months ago. I did this also 3 years ago when I changed jobs. I logged in to my account, typed who to make it out to (copied from a form I was given), clicked submit, waited for the check, mailed it with a form to new 401k, and it was done. Could it be easier? Sure it could be like transferring my Roth IRA from one broker to another which was done completely electronically. But dealing with my 401k was not objectively “hard” assuming you followed the steps, which the new broker/custodian detailed in step by step english.
Now of course we have to benchmark this process to the fact that the average person is a moron in which case, maybe her plan makes some sort of sense, but there should be a safe harbor for those of us who can do things for ourselves.
Everything is done electronically. The only reason 401k providers have not followed suit is because they like to use it as a method to retain assets.
I’ve only done it once and that was several years ago. I found it to be a moderate pain in the ass. I haven’t read the article, but if this actually makes it easier…sure, I’m all for it.
Times new regulations have actually created less red tape? 3/564,798