A job change can be a stressful, busy time, which is why many people forget about 401(k) funds and simply leave them in a former employer’s plan.
I can’t emphasize enough that people need to properly educate themselves about their options. Most people we encounter are hesitant to rollover old 401(k) funds because they aren’t aware of their options.
There also is a tendency to think amounts aren’t significant enough to warrant attention. The average person holds 11 jobs between the ages of 18 and 44, according to the Bureau of Labor Statistics, so each 401(k) account might not be substantial. But when you start consolidating plans, they become more meaningful.
Click here to read more about how to manage your 401(k) options when changing jobs.