Weekend Reading: Why You Should Clean Up Those Old 401(k)s

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
240329 WRR 312 Clean Up Those Old 401ks 240329 WRR 312 Clean Up Those Old 401ks
Weekend Reading

Have you ever abandoned a 401(k) account when changing jobs? Approximately $1.65 trillion is estimated to be sitting in such orphan accounts, representing the savings of 30 million workers. When workers leave behind small accounts, employers often transfer them to IRAs with low returns and high fees, leading to potential loss of savings over time.

Individuals should proactively manage their old 401(k) accounts, as not all plans are equal, and safe-harbor IRAs used by previous employers may not offer optimal returns. Consolidating accounts into a single, low-cost IRA can help maintain organization and maximize savings. However, individuals should carefully consider fees and investment options when choosing an IRA, as they may lack the same protections as 401(k) plans.


Key Takeaways:

📌 Don’t let your retirement savings from previous employers go to waste.

📌 Not all 401(k) plans are created equal.

📌 Get organized before you consolidate.