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.