Is it better to keep 401K accounts separate or roll them into one account?

Question

I have three 401K accounts from previous jobs, in addition to the one I have at my current job. Is it better to keep them separate or to roll them all into the account I have now?

Answer 1

Roll the old ones to IRA. Then you have unlimited investment choices and lower fees. Open a IRA at a low cost broker of no cost mutual fund company then have the 401K trustees write the checks to that company not to you. If they write the check to you they withhold 20% and you need to put 100% in the new account or face penalties and taxes.
Once it is rolled over you can decide to invest in mutual funds, stocks or convert to a ROTH paying the taxes now and being tax free forever.

Answer 2

You can (and should) "roll" the non-current ones into an IRA: the primary reason for this is to keep track without having to look in half-a-dozen different places!

You can open an IRA account at any major brokerage house, and then request each of the other accounts be paid directly to them in full "FBO" (or "for the benefit of") 'Your Full Name Goes Here.'

Ask around among friends/relatives for a good financial advisor/broker. In addition to consolidating accounts, holding your funds in an IRA rather than a 401(k) means you get a far wider choice of investment options.

Best wishes!

Answer 3

Diversity is always a good thing in investing. I say keep both, unless the amount in the old employee account is small. If it is under 10,000 roll it over. Of course you must also consider what the choices are at the new employer.

Answer 4

rolling rolling rolling keep those 401k rolling....MAKE MONEY!!!!!

Ok seriously you new 401 may be better than your older ones so yes combining them makes perfect sense.