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401(k) Plans: Labor and IRS Could Improve the Rollover Process for Participants

Date Published: 
Thursday, March 7, 2013
Source/Author: 
Government Accountability Office (March 2013)

401(k) plan participants separating from their employers must decide what to do with their plan savings. Many roll over their plan savings to IRAs. As GAO previously reported, there concern that participants may be encouraged to choose rollovers to IRAs in lieu of options that could be more in their interests. Because little attention has been paid to the distribution process, GAO was asked to identify challenges separating plan participants may face in (1) implementing rollovers; (2) obtaining clear information about which option to choose; and (3) understanding distribution options.

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