Changed jobs?
Changed Jobs: What Happens to Your Old 401(k)
Starting a new job is exciting — but it's easy to forget about the 401(k) you left behind. Here's the general picture.
Changed jobs?
Starting a new job is exciting — but it's easy to forget about the 401(k) you left behind. Here's the general picture.
Voluntarily changing jobs puts you in the same basic position as a layoff when it comes to an old 401(k): the account is still yours, but it now sits outside your day-to-day paycheck and benefits, which makes it easy to lose track of. Millions of Americans have old 401(k) accounts scattered across former employers that they've simply forgotten about.
If the plan allows it and the balance is large enough, you can simply leave the account where it is and keep track of it separately from your new job's benefits.
Many employer plans accept rollovers from a prior 401(k), which can simplify things down to a single account to track.
An IRA rollover consolidates old accounts outside of any employer plan and can offer a wider range of investment choices.
Usually the costliest option once taxes, potential penalties, and lost future growth are considered — worth understanding fully before choosing it.
It's common to have two, three, or more old 401(k)s scattered across a career's worth of jobs. Whether it makes sense to consolidate them, and how, depends on the specifics of each plan — fees, investment options, and account rules can vary quite a bit from one employer's plan to the next.
Call (832) 536-8693 if you'd like help thinking through multiple accounts, at no cost and no obligation.
A ten-minute conversation can help you get organized, with zero pressure to move anything.
Free — no obligation, no pressure.