The Forgotten 401k Problem

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 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.

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, “The True Cost of Forgotten 401(k) Accounts (2021)”, 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. 

 

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:

  1. Rollover into an individual retirement account (IRA)
  2. Rollover into a new 401(k) account if the new employer permits it
  3. Withdraw and close your retirement account
  4. Leave the money behind in your former employer’s retirement plan

Of course, it depends on an individual’s 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.

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’t want to leave your money behind when it should be there as part of your retirement savings to use when you retire in future.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Since joining Kramer Wealth Managers in 2021, Adrianna Rocha has been a client service dynamo, ensuring every client interaction is seamless and delightful. She’s the go-to guru for all things client experience, handling everything from videophone chats to scheduling meetings and processing forms with a smile. Her goal? To make sure every client feels valued and well-cared-for.

Adrianna graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017 and brings nearly a decade of customer service experience to our team. She thrives on personal connections, celebrating both her achievements and those of our clients. When she’s not busy at work, you might find her indulging in her passions—dogs, houseplants, essential oils, and the tantalizing flavors of Mexican cuisine. Proud fur-mama to her adorable Aussie mix, Ziva. Adrianna brings a touch of warmth and enthusiasm to everything she does.

Q: What’s your favorite part of working with clients?

A:  I enjoy client service because it allows me to help people and make a positive impact. Using my listening skills to understand client needs and solve problems is satisfying. I love turning negative experiences positive and the daily variety of challenges.

Adrianna is not registered with Osaic Wealth.

Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
info@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.

Jack Morley

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
240-379-6909 FAX
info@kramerwealth.com

Jack Morley has been a vital part of the Kramer Wealth Managers team since 2010, starting with various projects and officially joining full-time in 2013. As our go-to Account Service Specialist, Jack is the friendly face and reliable voice who ensures a smooth client experience. He’s the linchpin in client communications, handling account maintenance and bridging connections between clients and our advisory team.

A 1998 graduate of Gallaudet University with a BA in Psychology, Jack brings a wealth of customer service experience from retail and human services. His handyman skills are a bonus, making him the resident problem-solver and DIY enthusiast. Outside the office, Jack enjoys long walks with his dog Bailey.

Married for 25 years to his wonderful wife, Monica, Jack is also the devoted dad to two dynamic daughters who keep him on his toes. When he’s not walking Bailey—he’s likely tinkering on a new project or spending quality time with his family.

Q: What’s your favorite part of working with clients?

A:  I enjoy assisting clients in maintaining their accounts and ensuring there is a smooth transition in between changes being made within their accounts.

Jack is not registered with Osaic Wealth.