In the event you’ve ever puzzled what occurred to a 401(okay) account from a number of jobs in the past, it’s possible you’ll not must surprise for for much longer.
Earlier this month, Rep. Bobby Scott (D-Va.) launched the Retirement Enchancment and Financial savings Enhancement Act, or RISE Act, within the U.S. Home of Representatives. And the invoice has since passed the Home Schooling and Labor Committee, which Scott chairs.
Amongst different potential enhancements to the American retirement system, the RISE Act would create a centralized “lost and found” for retirement accounts. As Scott describes it:
“The RISE Act, which includes several proposals from Committee Members, makes meaningful improvements to our retirement system. These changes include creating an online ‘Retirement Lost and Found’ database at the Department of Labor to help workers locate their hard-earned retirement savings as they move from job to job. According to the Government Accountability Office, more than 25 million people who changed jobs between 2004 [and] 2014 left behind one or more retirement accounts.”
Whereas it’s already potential to seek out an previous retirement account, the method isn’t easy and can require checking in a number of locations. An official database maintained by the U.S. Division of Labor may make that course of simpler by pointing employees in the suitable route.
The RISE Act remains to be a great distance from changing into legislation, with the complete Home in addition to the Senate but to vote on it.
According to the Nationwide Affiliation of Plan Advisors, a retirement trade advocacy group, the RISE Act might be folded right into a proposal to broaden an present retirement legislation, the Setting Each Neighborhood Up for Retirement Enhancement (Safe) Act of 2019, earlier than the complete Home votes on it.
The proposal to broaden the Safe Act, which is sometimes called the “Secure Act 2.0,” was permitted by the Home Methods and Means Committee in Could, as we reported in “New Retirement Bill Would Help Savers of All Ages.”