What To Do With an Old 401(k)?
June 12, 2025
In this episode of What Works Wednesday, CFP® Leland Gross tackles one of the most common questions he receives: “What should I do with an old 401(k) or 403(b) from a previous employer?” This is especially relevant for self-employed professionals and entrepreneurs who’ve left corporate jobs to start their own businesses. Leland breaks down the high-stakes options for handling old retirement accounts, emphasizing how the wrong decision can lead to significant taxes and penalties. He outlines two and a half main strategies for managing a previous employer's 401(k), starting with the often-overlooked option of simply leaving it where it is. He also explains how retirement accounts are governed by ERISA laws and how employers and third-party administrators handle inactive accounts. Whether you're a millennial with multiple 401(k)s or a small business owner navigating your retirement planning, this episode offers clear guidance on how to make smart, tax-efficient choices with your old retirement savings.
Key Topics Covered:
Why job changes often leave people with multiple 401(k) accounts
How to avoid taxes and penalties on old retirement accounts
What ERISA means for your old 401(k)
Why doing nothing might cost you—or help you
Leland’s personal experience with rolling over his 401(k)