A 401K story…………..to read
At Herlihy Group we love to share our real life client experiences with our clients , friends and families.
This share is about our employee and what happened to her “left behind” 401k. First, a few facts about 401k plans in general.
Chances are, most of us will change jobs several times over the course of our careers . In fact, the average US employee switches jobs 11 times before retiring. That means employees may participate in 11 different 401(k)s or other retirement savings plans during a career.
The good news is 401(k) plans are portable. If you switch jobs before retirement, you usually can choose among several things to do with your 401(k):
Here are a few of today’s options:
- leave the money in your former employer’s plan;
- roll over the money to your new employer’s plan, if the plan accepts transfers;
- roll over the money into an IRA; or
- take the cash value of your account
If you are in a position to be moving your 401K, PLEASE take the time to review each option in detail with your financial and tax advisor. Even if your account balance is small, you do want to decide what the best option for you is!
Now back to you employee……. She made the option to leave her 401k plan behind. She figured that it was too small to bother with. SO over the past ten years her account has been charged about $750 annually and her small balance that should have been building has evaporated due to fees.
So for all you people out there who have those small 401k plans from previous employers, take a close look at how this is working for you! If you need any assistance, just let us know. We have 401k roll over experts standing by!