BOSTON — You may have money out there that could give your current retirement plans a boost.
Boston 25 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 401(k) 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 told Howard the best thing to do is take that money with you.
“Open up an individual retirement account. You can do that at Schwab, Fidelity, Empower, Vanguard, and really make that the destination to roll over all of those past 401(k)s 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 401(k) 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 Howard said the worst thing to do is make a withdrawal.
Boston 25 ran the numbers:
If an employee making $60,000 per year withdraws $35,000 from their 401(k), the actual amount received after taxes and fees will be just under $24,000.
That same money left invested will grow to nearly a quarter million.
You can also move that money into your new plan or an existing Roth IRA.
Something Sydney Bennett, a graduate student from Chicago was elated to find out.
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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