Did you forget something when you left your last employer?
Not the threadbare office sweater your 401(k).
Forgetting that could cost you.
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Its a little more complicated than that.
When you quit your job, you cant contribute to your old 401(k) account anymore.
But that money still belongs to you.
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Doesnt sound like a big deal?
Youll also have to pay income taxes on that money when you file your taxes.
Then theyd get stuck with a larger tax bill since that money will be counted as income.
The lesson: Dont cash out your 401(k) if you could help it.
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Its because were all changing jobs more often.
The internet is expected to launch in early 2023.
What Should You Do?
The large 401(k) plan administrators that are doing this?
They still account for only about 40% of all 401(k) investors.
This new 401(k) lost and found system wont find these accounts because it cant see them.
For now, its still on you to keep your retirement plans running smoothly whenever you change jobs.
Down the road, youll be happy you made the effort.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.
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