Changing jobs always raises the question for employees as to what to do with their existing retirement accounts.  Due to the hurdles associated with rolling over the funds (or their new employers’ inability to accept them), many have historically made the decision to cash them out or to simply leave them behind under their former employer’s watch.

Both of these options can be troublesome and costly for everyone involved.  Employees end up paying unnecessary fees, missing out on potential gains, or dealing with accounts spread out in multiple locations.  Employers can also face the added cost of managing large numbers of inactive accounts left by departed workers.

Well, there’s good news.  A recent ruling by the Treasury Department, IRS Revenue Ruling 2004-09, has made things considerably easier for employers to accept rollovers from their new hires’ previous 401(k) plans.  Rather than requiring the two plans to communicate, using the individual as the go-between nonetheless, the hiring employer can now merely check a recent annual report filing (Form 5500) on a public database.

As a result, rollovers between plans have never been faster or required less paperwork.  Click here to read the full article from Employee Benefit Adviser and learn more about the ruling and its implications for employers.