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What's the benefit of rolling over?
What's the benefit of rolling over?
Brianna LaCanfora avatar
Written by Brianna LaCanfora
Updated over 8 months ago

If you recently left a job where you had a 401(k) account, it can be a good idea to roll over those savings into an IRA or a new 401(k). You can also consolidate multiple 401(k)s or IRAs. That way you can keep track of your retirement assets in one place, and make sure you’re not paying too much in fees.

Here are some reasons you may not want to leave your 401k behind:

  1. It can be harder to control your fees

    • 401k plans have various fees in them which can be hard to find but really add up. IRAs can have fees too, but you get to pick a low-fee account right away, and the fees are generally easier to spot. That way you know exactly what you're paying.

  2. You're less likely to keep track of it

    • There are over 25 million "stranded" 401ks in the US tied to former employers. Most people find it easier to track their assets when it's in an IRA in their own name — just like a bank account.

  3. It's tied to your former employer who can move it

    • Your former employer can move your 401k to a new institution if they change plan providers. That can make it harder to ultimately reclaim your assets.

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