Expert tips to consolidate multiple 401(k) accounts

Vanguard: Median 401(k) balance is $33,472
Published: Apr. 18, 2023 at 4:54 PM EDT
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InvestigateTV - An estimated 24 million 401(k) accounts holding approximately $1.35 trillion in assets are believed to have been forgotten according to Capitalize, an online 401(k) rollover platform.

Each year millions of Americans change jobs, leaving behind an old 401(k) at their old job and picking up a new one at their current employer.

Virginia Credit Union financial coach Cherry Dale said while you can always roll the money from your previous plan into your new account, you could also just leave that money where it is and let it grow.

Dale added that if your new company doesn’t have a 401(k), you could open a Roth IRA and roll your old account into it.

“So [a Roth IRA] is an individual retirement account that you do not need an employer to have that type of retirement account,” Dale said.

If you are considering opening a Roth IRA or keeping multiple retirement accounts, Dale said to consider the fees for the plans.

“You’ve got to just make sure if you’ve got multiple retirement accounts that you are taking care of everything and that you’re keeping things like your beneficiaries up to date, contact information up to date as well,” Dale said.

Dale recommended contacting a financial advisory if you feel you need help deciding which option is best for you.