Managing 401(k) rollovers often leaves HR teams juggling outdated systems, tracking missing accounts, and answering endless employee questions. These admin burdens take time, strain resources, and can disrupt other priorities.

Manifest changes how rollovers are handled. With a streamlined process that automates all steps participants would take on their own.

By simplifying the entire process, we help HR teams save time, reduce stress, and focus on empowering their organization and workforce.

Why 401(k) Rollovers Strain HR Resources

Job changes are more frequent than ever, with the average person switching careers 7+ times in their lifetime and nearly 30% of the workforce changing jobs each year. Each transition often leaves behind a 401(k) account that needs to be managed, creating challenges for both employees and HR teams. Typically, employees consider three options:

1. Cashing out

This may seem like the easiest choice, but it comes with steep consequences:

  • Penalties and taxes: Early withdrawals significantly reduce the value of savings.
  • Reduced retirement funds: Over the past five years, cash-outs have cost Americans $2 trillion in lost retirement savings.

2. Leaving accounts with former employers

While this avoids immediate penalties, it introduces several issues:

  • High fees: Dormant accounts often carry administrative fees that eat into savings.
  • Neglected accounts: Employees are less likely to monitor or optimize these accounts, leading to poor performance.
  • Fragmentation: Managing multiple accounts across different employers makes tracking progress and making informed decisions harder.

3. Transferring accounts

Consolidating accounts is widely regarded as the best choice for long-term financial health. However, the process itself is far from simple:

  • Outdated systems: Traditional transfers require paperwork, phone calls, and even faxes.
  • Delays and frustrations: Transfers can take months to complete, requiring hours of effort from employees and HR teams.

These inefficiencies place a heavy burden on HR, including:

  • Endless paperwork: Gathering account details and processing forms often takes weeks.
  • Employee support demands: HR becomes the go-to for employees struggling to handle the complex process.
  • Unmanaged accounts: Orphaned accounts create higher employee fees and increased administrative costs for employers.

How Manifest Simplifies 401(k) Rollovers

Manifest eliminates the complexity of 401(k) rollovers with a modern, streamlined process to save time, reduce errors, and provide a seamless experience for HR teams and employees.

Key features that reduce admin burdens and improve HR efficiency:

1. Employer-based account discovery: Employees no longer need to track old account details. By simply entering their former employer’s name, they can quickly locate retirement accounts, saving time and avoiding frustration.

2: Automated quality checks: Manifest’s system runs over 25 quality checks throughout the transfer process to catch potential errors and delays, ensuring smooth and accurate rollovers every time.

3. Real-time progress tracking: HR teams gain access to detailed dashboards that provide updates on rollover progress, employee participation, and any bottlenecks. This visibility allows for proactive planning and quicker resolutions.

4. Secure, 24/7 accessibility: Manifest’s digital platform is available 24/7, allowing employees to manage their rollovers on schedule without constant HR involvement.

5. Concierge services: Our assistant, Henry, guides employees step by step through the rollover process. Employees can complete their part in under 10 minutes while Henry handles the rest, ensuring faster and error-free transfers.

The Cost of Doing Nothing

Ignoring or delaying the modernization of 401(k) rollovers has real consequences for both employees and HR teams:

  • Lost employee savings: Employees are more likely to cash out or neglect accounts, leading to lower retirement balances and reduced financial security.
  • Increased admin workload: HR teams spend countless hours managing outdated processes, detracting from strategic priorities.
  • Higher turnover impact: Fragmented or unmanaged accounts can leave employees feeling unsupported, negatively impacting retention and engagement.

Without a solution like Manifest, organizations risk losing time and money and creating unnecessary frustrations for employees and HR.

The Impact on HR and Employees

Manifest's Retirement Concierge Service significantly enhances efficiency for HR teams and provides employees with a seamless, transparent experience, building confidence in their financial futures.

Key Benefits:

  • Increased Retirement Savings: Employees consolidating accounts through Manifest experience an average increase of $13,450 in their retirement balances.
  • Reduced Cash-Out Rates: Employers observe a significant decrease in early withdrawals, ensuring employees keep their savings invested and growing as they work towards their post-career goals.
  • Enhanced HR Efficiency: With transfers completed in as little as 14 days, HR teams can redirect their focus to strategic initiatives, reducing administrative workloads.

Why HR Teams are Choosing Manifest

HR teams are already stretched thin with tasks like managing benefits, onboarding, emergency savings, and employee engagement. Simplifying 401(k) rollovers with Manifest offers a clear path to reducing admin burden and improving efficiency.

With fewer manual tasks, fewer employee questions, and faster rollovers, HR can reduce the administrative load while improving the overall employee experience, and employees benefit from a seamless, supportive experience.

A Smarter Way to Reduce Admin Burdens

Managing 401(k) rollovers doesn’t have to drain HR resources or disrupt workflows. Manifest streamlines every step of the process, reducing paperwork, automating tasks, and offering real-time support.

For HR teams, this means less time spent on manual processes and more bandwidth for keeping employees center-focused. For employees, transferring is a smoother, faster experience with stronger financial outcomes. Manifest transforms a complex, time-consuming task into an efficient, stress-free solution, empowering organizations to operate at their best.

Ready to reduce admin burdens and improve efficiency? See how Manifest’s transfer process can make a difference today.