RSI In The News
RSI PlanAdviser Magazine Article: Helping Your Plan Sponsors Avoid the “Cash Out”.
To a plan sponsor, a terminating employee is often someone they’ve worked with for years, attended holiday parties, met their families and seen them go thorough good times and bad. Plan sponsors are also well aware of the consequences of cashing out a 401(k). Immediate taxes, fees and penalties are high, not to the mention the long-term significant loss of compound interest. Consequences aside, the number of cash outs continues to rise. According to one study, as many as 45% of people cash out their 401(k) when leaving their companies.
For your plans sponsors it’s often a heavy burden to bear, watching terminated employees sell their futures short to ease the short-term pain of leaving a job. Sponsors know that even if the terminated employee has every intention of re-investing in retirement, few will gain substantial traction in that effort...
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