How to keep your old 401K at a new job

CHARLOTTE — Americans are leaving billions in retirement accounts at old employers.

Consumer Adviser Clark Howard said it is up to you to find that money and put it to work for your wallet!

Deon Glenn said he has one 401K from a previous job.

“So, the first one, have you gone back and gotten that money or is it still sitting there at that old employer?” Howard asked. “It’s still there; I didn’t go get it,” Glenn said.

He is not alone. Millions of Americans leave 4,000 accounts behind when they switch jobs.

Wes Moss, a certified financial adviser, said it is easy for people to lose track.

“This is real money,” Moss said.

He said the best thing to do is take that money with you.

“Open up an individual retirement account. You can do that at Schwab, Fidelity, and Vanguard and really make that the destination to roll over all of those past 401Ks into one account,” he said.

Moss said the best way to find old accounts is to search your inbox.

“Find anything from your company or 401K literally in your email search; that, I think, is the best way to do it,” Moss said.

If that doesn’t work, try the Department of Labor’s abandoned plan search or the National Registry of Unclaimed Retirement Benefits.

Once you locate your money, the worst thing to do is make a withdrawal.

Glenn said he was tempted to take his money out.

“I definitely wanted to touch it, but again, they had programs showing you if you took it out, what it looks like, and how the curve would drop. So that deterred me,” he said.

If an employee making $60,000 per year withdraws $35,000 from their 401K, the actual amount received after taxes and fees will be just under $24,000.

That same money left invested with grow to nearly a quarter million.

You can also move that money into your new plan or an existing Roth—tax-free.

Howard said the best way to make sure you are on track for retirement is to save a dime of every dollar you make.

“It’s up to you and me to save money for our future. Nobody else is going to take care of us. We have got to take care of ourselves,” Howard said.

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