US workers are missing out on billions of dollars in investment gains when they change jobs without realising it. Old employers are increasingly moving their 401(k) funds into individual retirement accounts (IRAs) parked in cash. This process, known as involuntary rollover, is common for accounts with small balances.
Currently, employers are also auto-enrolling new hires in 401(k) plans, and some employees may not even be aware they have retirement savings. Additionally, a recent law expanded the range of 401(k) accounts that employers can roll over into IRAs.
