If you’ve moved jobs over the course of your career, you want to make sure that you can keep track of all your retirement savings accounts. Not only do you want to make sure that you have all your hard-earned savings, you also want to make sure that you have a cohesive retirement investing strategy.
One of your options is to consolidate all those savings and roll funds into your new 401(k) plan, which can make it easier to track. This ensures that your overall allocation is aligned and that your money is all moving in the same direction. It’s also important to consider the difference in expenses. If you leave old 401(k)s at previous employers, you may incur extra fees. Depending on the size of your savings, your employer may just write you a check to move those funds out of their plan. And, if you don’t roll those over to another qualified account within 60 days you may be subject to tax penalties.
Another option is to roll old funds over to an IRA, which we’ve covered on the blog recently.