Auto-portability fix for small 401(k)s leaves Roth savers behind
InvestmentNews' Lee Almazora pivots off an earlier piece in CNBC that highlights a general gap in the transfer of retirement funds that blocks Roth funds from moving back into another employer-sponsored plan, affecting auto portability. Almazora paraphrases RCH EVP & Chief Revenue Officer Neal Ringquist, who lays out key auto portability statistics, including consolidations, plans adopted and the number of active participants served by the network.
Small 401(k)s may automatically follow workers to their next job — except Roth money
Writing for CBNC, personal finance reporter Sarah Agostino examines the plan-to-plan portability afforded by auto portability, as delivered by the Portability Services Network, and highlights a gap that does not permit Roth funds to move through the system. Agostino turns to RCH EVP Neal Ringquist, who provides an overview of some key auto portability metrics, including consolidations, plans adopted and the number of active participants currently served by the network. Regarding Roth balance limitations, Ringquist states: “we are hoping this restriction is addressed by legislation or regulators soon, as it would open up additional accounts that can take advantage of auto-portability, particularly those in state-based auto-IRA programs.”
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Kelsey’s (K)orner: Cool Runnings and Auto Portability — How We Smooth the Track
Kelsey Mayo, Chief of Retirement Policy & Regulatory Affairs for the American Retirement Association (ARA), authors a piece in NAPA Net, addressing potential improvements that would "smooth the track" for auto portability, including allowing the portability of Roth balances, explicitly including sub-$1,000 balances and "expanding the parameters" to include balances greater than $7,000. Mayo closes by writing: "[a]uto portability is directionally correct. Leakage remains a very real threat—and this is meaningful progress."
SECURE 2.0 Adoption Trends: Plan Sponsors Lean Into Enhanced Catch-Up Contributions
Writing in 401k Specialist, Editor-in-Chief Brian Anderson offers insights into Vanguard's analysis of SECURE 2.0 adoption trends by their plan sponsor clients. With respect to auto portability adoption, Anderson writes that "the new analysis also shows auto portability is gaining traction" -- referencing the Vanguard analysis which found that "7% of its plans had adopted" the feature by year-end 2025. Anderson notes that this "comes on the heels of other recordkeepers announcements" and cites a November 2025 report by Fidelity indicating that more than one-third of its 26,500 plans have already adopted auto portability. Anderson adds that "[a]uto portability offers a structural solution to retirement savings leakage -- an issue policymakers have long targeted."
Plan Sponsors Warm Up to Super Catch-Up
PLANSPONSOR's Emily Boyle reviews a 2/10/26 Fiduciary & Regulatory Insights report from Vanguard's Jeffrey Clark, which examines optional provisions of SECURE 2.0 that are beginning to take hold with their plan sponsor clients. Boyle writes that the Vanguard analysis concludes that, "[b]y year-end 2025, 7% of plans had adopted auto-portability," and quoted Clark's piece as characterizing the results as "a modest step with significant long-term potential.”
Retirement Readiness Improves, But Long-Term Concerns Remain
Writing in RoughNotes.com and covering a recent Harkin Institute Symposium, Thomas McCoy, CLU, discusses the "macro-view of workers’ prospects for retirement security" and see reasons for optimism. McCoy cites remarks made by Kelly Hahn, Vanguard’s head of retirement research, whose firm is a member of the Portability Services Network and supports auto portability for their plan sponsor clients. Hahn suggested that auto portability could eventually play a role in preserving saving rates when an employee enrolls in a new employer's plan. Also attending was Groom Law Group's Michael Kreps, who remarked that auto portability was a solution for cashout leakage and for minimizing small balances left behind at former employers.
Defined Contribution Top Trends for 2026: What Plan Sponsors Need to Get Right
In their forward-looking article noting the key issues that plan sponsors need to "get right" for 2026, TheAdviserMagazine outlines the top trends for the year. Focusing on regulatory and compliance issues, the authors write: "plan sponsors should be aware of two key initiatives: automatic portability and the Retirement Savings Lost and Found Database. Both are designed to help participants maintain or reclaim retirement savings as they transition between jobs throughout their career."
Andy Reed: Inertia Is the Most Powerful Force in Behavioral Finance
Andy Reed, Vanguard’s head of behavioral economics research, is the featured guest on Morningstar's "The Long View" podcast, and offers his hosts his expert views on how investors think, feel, and make decisions. During the discussion, the conversation turns to the topic of cashout leakage, where Reed states: "I think auto-portability is a really compelling solution to this problem.....being able to move your pockets of money from one plan to another can be really powerful in kind of maintaining that saving and investing momentum."
