Retirement Clearinghouse Consolidates $20B in Assets
Retirement Clearinghouse, a 401(k) portability and consolidation provider, announced it has combined over 525,000 retirement savings accounts into existing 401(k)s or individual retirement accounts (IRAs).
The plan-to-plan consolidation now comprises of more than $20 billion in assets. Retirement Clearinghouse first broke $10 million of those assets in July 2021, over a decade after it was founded.
The provider credits several factors for the increase in total assets, including a need from employer-sponsored retirement plans to utilize RCH for roll-in services on large balances. This includes RCH’s partnership with the Federal Thrift Savings Plan (TSP), which the provider said was its “most significant relationship” contributing to the milestone.
The collaboration was established through RCH’s partnership with Alight Solutions, who serves as the founder of Portability Services Network (PSN).
RCH’s automatic rollover (ARO) service also added to the achievement, as the provider recognizes the feature for its electronic consolidations completed through PSN’s Auto Portability service. Currently, PSN comprises of recordkeepers who represent 82 million employees with over 185,000 employer-sponsored plans.
RCH notes that the average account balance in a large-balance, plan-driven consolidation was $53,293, while the average account balance in a small-balance, ARO-driven consolidation came in at $2,794. The provider observed that even as large-balance conversions largely drove the increase in assets, ARO-driven electronic consolidations have also quickly risen.
“Innovative technology, and close cooperation with the private and public sectors, have propelled us into the unique position of being able to boost the financial well-being of Americans and their families across the country,” said Spencer Williams, founder, president, and CEO of Retirement Clearinghouse. “This latest milestone only emphasizes the rapid growth of our solutions which make it easy for plan participants to consolidate their retirement accounts, and preserve more savings, through a purely electronic process. Our platform serves as the digital super-highway for assets that move across the U.S. retirement system.”
Retirement Clearinghouse works with more than 41,000 retirement plans and over 2.7 million plan participants with more than $34 billion in retirement savings.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.