Educating participants about the importance of remaining committed to retirement savings and of the value of consolidating accounts is a good place to start, experts say.
COVID-19-related distributions will be capped at $100,000 with no mandatory tax withholding requirements and the ability to repay them.
The recordkeeper is making the move in response to the CARES Act.
The firm is also offering free fiduciary and wellness services to employers.
The Savings Preservation Working Group says that at least 33% and as many as 47% of plan participants withdraw part or all of their retirement savings when switching jobs.
Withdrawals from IRAs accounted for most of the leakage, according to the GAO.
Two experienced ERISA attorneys at Drinker, Biddle and Reath warn against the idea of participants seeking a hardship withdrawal for the purpose of paying down student loan debt; requesting a hardship withdrawal for upcoming tuition expenses is another matter entirely.
Only 2.7% discontinued contributions, according to the ICI.