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The Retirement Trainer

Jun 11, 2020

If you and your spouse have worked multiple jobs over the course of your life, you may have old 401(k) plans with former employers scattered all over the place. In fact, we’ve worked with clients with over a dozen plans sitting around that haven’t been seen, updated, or touched at all in years - or even decades.

These zombie 401(k)s can turn into substantial tax bills and IRS penalties if you’re not careful, and there are lots of ways to do serious harm to your retirement fund if you make a wrong move.

If you have old 401(k) plans that you need to address, today’s episode is for you. You’ll learn about the five main plans of action you can take, the pros and cons of each, and what to be on the lookout for. More than anything, though, we highly recommend you work with your financial advisor as you navigate this potentially overwhelming situation.

In this conversation, you’ll learn:

  • What can happen if you choose to leave a 401(k) with a former employer - and why it’s so easy to forget about old 401(k) plans.
  • How to move an old 401(k) to your current employer - and what you need to ask your HR department before you do so.
  • Why cashing out your old 401(k) may do irreparable harm to your retirement plan.
  • What you need to know about completing an indirect rollover into your IRA - and how to avoid preventable penalties.
  • Why a direct rollover into your IRA is the simplest and most effective way to move an old 401(k) - and why this is not a one-size-fits-all solution.

Show Notes

To get access to today's show notes, including links to all the resources mentioned, visit

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