DAYTON — Americans are leaving billions in retirement accounts at old employers.
News Center 7′s Consumer Advisor Clark Howard said it is up to you to find that money and put it to work for your wallet.
Millions of Americans leave 401K accounts behind when they switch jobs, which is a huge mistake.
Wes Moss is a financial advisor. He said, “So this is real money, and it’s pretty easy for people to lose track.”
Moss is a certified financial planner. He said the best thing to do is to take the money with you.
“Open up an individual retirement account. And you can do that at Schwab Fidelity Vanguard and really make that the destination to roll over all those past 401K accounts into one,” Moss said.
When it comes to finding old accounts, Moss said to search your email. “Find anything from your company or 401K. Literally in your email search, that I think is the best way to do it.”
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.
If an employee making $60,000 a year withdraws $35,000 from their 401K, the actual amount received after taxes and fees would be just under $24,000.
That same money left invested would grow to nearly $235,000. You can also roll that money over into your new plan or an existing Roth IRA and move it tax-free.
The most important thing to not be confused about, it’s up to you to save money for your future, and the best way to do it is through automatically at work or your own Roth IRA.
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