Rep. Brad Schneider, D-Ill., has introduced legislation, the Advancing Auto-Portability Act of 2022, to allow for seamless transfer of retirement accounts from employer to employer.
The bill is intended to reduce early cash-outs of defined contribution plan assets — leakage, in industry parlance.
The bill, H.R. 9252, amends the Internal Revenue Code to provide incentives for the use of automatic portability arrangements under defined contribution plans, and for other purposes.
Steve Saxon, principal at Groom Law Group in Washington, told ThinkAdvisor Wednesday in an email that Schneider's legislation "enables recordkeepers to link up electronically so that an individual can locate all of their various small retirement account balances and move them seamlessly into their retirement account at their new employer."