{"id":4227,"date":"2022-12-16T11:05:43","date_gmt":"2022-12-16T17:05:43","guid":{"rendered":"https:\/\/kramerwealth.com\/?p=4227"},"modified":"2024-01-24T09:49:05","modified_gmt":"2024-01-24T15:49:05","slug":"the-forgotten-401k-problem","status":"publish","type":"post","link":"https:\/\/kramerwealth.com\/the-forgotten-401k-problem\/","title":{"rendered":"The Forgotten 401k Problem"},"content":{"rendered":"<p class=\"responsive-video-wrap clr\"><iframe title=\"The forgotten 401(k) problem\" src=\"https:\/\/player.vimeo.com\/video\/779282217?h=3429e877c3&amp;dnt=1&amp;app_id=122963\" width=\"1200\" height=\"675\" frameborder=\"0\" allow=\"autoplay; fullscreen; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p><b>The forgotten 401(k) problem<\/b><\/p>\n<p><span style=\"font-weight: 400;\">401(k) is one of the popular retirement savings accounts for Americans. It is a great tool for saving money in a tax-efficient way. However, many of us tend to change jobs every few years based on the data from a national survey U.S. Department of Labor conducted last year. When a person changes a job, they usually need to decide what to do with the 401(k) savings they accumulated. Unfortunately, many of them choose to leave their 401(k) account behind for some extended period of time. Ultimately, a person could end up with at least several 401(k) accounts when they retire after having different jobs throughout their career.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, how many accounts have been left behind? How much money is in them? The research team with Capitalize Money, Inc. provided their white paper, \u201cThe True Cost of Forgotten 401(k) Accounts (2021)\u201d, with the statistics. They determined that there is total $1.35 trillion of assets and more than 24 million forgotten 401(k)s as of May 2021. That means the average balance of each forgotten 401(k) account is around $55,400. They concluded that an additional 2.8 million accounts are left-behind by job changers each year even though some would be reclaimed or liquidated eventually.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Now, when you decide to change a job, you are encouraged to review several different options to decide what you should do with your retirement account under your former employer. The different options could include the following:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rollover into an individual retirement account (IRA)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rollover into a new 401(k) account if the new employer permits it<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Withdraw and close your retirement account<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Leave the money behind in your former employer\u2019s retirement plan<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Of course, it depends on an individual\u2019s situation to determine which options are available to choose from. For some, one option would be better than other options. We, Kramer Wealth Managers, encourage you to ensure you have a plan to take care of your retirement plans with your former employers throughout your career.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For those who realizes that they do have a forgotten 401(k) account, please feel free to contact us if you would like to discuss and determine which option is best for your forgotten retirement account. You don\u2019t want to leave your money behind when it should be there as part of your retirement savings to use when you retire in future.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The forgotten 401(k) problem 401(k) is one of the popular retirement savings accounts for Americans. It is a great tool for saving money in a tax-efficient way. However, many of us tend to change jobs every few years based on the data from a national survey U.S. Department of Labor conducted last year. When a [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":4249,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"video","meta":{"ocean_post_layout":"","ocean_both_sidebars_style":"","ocean_both_sidebars_content_width":0,"ocean_both_sidebars_sidebars_width":0,"ocean_sidebar":"0","ocean_second_sidebar":"0","ocean_disable_margins":"enable","ocean_add_body_class":"","ocean_shortcode_before_top_bar":"","ocean_shortcode_after_top_bar":"","ocean_shortcode_before_header":"","ocean_shortcode_after_header":"","ocean_has_shortcode":"","ocean_shortcode_after_title":"","ocean_shortcode_before_footer_widgets":"","ocean_shortcode_after_footer_widgets":"","ocean_shortcode_before_footer_bottom":"","ocean_shortcode_after_footer_bottom":"","ocean_display_top_bar":"default","ocean_display_header":"default","ocean_header_style":"","ocean_center_header_left_menu":"0","ocean_custom_header_template":"0","ocean_custom_logo":0,"ocean_custom_retina_logo":0,"ocean_custom_logo_max_width":0,"ocean_custom_logo_tablet_max_width":0,"ocean_custom_logo_mobile_max_width":0,"ocean_custom_logo_max_height":0,"ocean_custom_logo_tablet_max_height":0,"ocean_custom_logo_mobile_max_height":0,"ocean_header_custom_menu":"0","ocean_menu_typo_font_family":"0","ocean_menu_typo_font_subset":"","ocean_menu_typo_font_size":0,"ocean_menu_typo_font_size_tablet":0,"ocean_menu_typo_font_size_mobile":0,"ocean_menu_typo_font_size_unit":"px","ocean_menu_typo_font_weight":"","ocean_menu_typo_font_weight_tablet":"","ocean_menu_typo_font_weight_mobile":"","ocean_menu_typo_transform":"","ocean_menu_typo_transform_tablet":"","ocean_menu_typo_transform_mobile":"","ocean_menu_typo_line_height":0,"ocean_menu_typo_line_height_tablet":0,"ocean_menu_typo_line_height_mobile":0,"ocean_menu_typo_line_height_unit":"","ocean_menu_typo_spacing":0,"ocean_menu_typo_spacing_tablet":0,"ocean_menu_typo_spacing_mobile":0,"ocean_menu_typo_spacing_unit":"","ocean_menu_link_color":"","ocean_menu_link_color_hover":"","ocean_menu_link_color_active":"","ocean_menu_link_background":"","ocean_menu_link_hover_background":"","ocean_menu_link_active_background":"","ocean_menu_social_links_bg":"","ocean_menu_social_hover_links_bg":"","ocean_menu_social_links_color":"","ocean_menu_social_hover_links_color":"","ocean_disable_title":"default","ocean_disable_heading":"default","ocean_post_title":"","ocean_post_subheading":"","ocean_post_title_style":"","ocean_post_title_background_color":"","ocean_post_title_background":0,"ocean_post_title_bg_image_position":"","ocean_post_title_bg_image_attachment":"","ocean_post_title_bg_image_repeat":"","ocean_post_title_bg_image_size":"","ocean_post_title_height":0,"ocean_post_title_bg_overlay":0.5,"ocean_post_title_bg_overlay_color":"","ocean_disable_breadcrumbs":"default","ocean_breadcrumbs_color":"","ocean_breadcrumbs_separator_color":"","ocean_breadcrumbs_links_color":"","ocean_breadcrumbs_links_hover_color":"","ocean_display_footer_widgets":"default","ocean_display_footer_bottom":"default","ocean_custom_footer_template":"0","ocean_post_oembed":"","ocean_post_self_hosted_media":"","ocean_post_video_embed":"","ocean_link_format":"","ocean_link_format_target":"self","ocean_quote_format":"","ocean_quote_format_link":"post","ocean_gallery_link_images":"off","ocean_gallery_id":[],"footnotes":""},"categories":[26,23,25],"tags":[34,40],"acf":[],"_links":{"self":[{"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/posts\/4227"}],"collection":[{"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/comments?post=4227"}],"version-history":[{"count":3,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/posts\/4227\/revisions"}],"predecessor-version":[{"id":4246,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/posts\/4227\/revisions\/4246"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/media\/4249"}],"wp:attachment":[{"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/media?parent=4227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/categories?post=4227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kramerwealth.com\/wp-json\/wp\/v2\/tags?post=4227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}