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.
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