Rolling over is more than a dog trick
Three reasons why rolling over 401(k)s from former employers may make sense.
Have money sitting in 401(k) accounts from former employers? If so, you’re not alone. Recent research estimates that there are more than 24 million “forgotten” 401(k) accounts, holding approximately $1.35 trillion dollars. Are any of those dollars yours? If so, you should consider rolling any old 401(k) into your new Betterment 401(k) – here’s why:
1. Get a comprehensive view of your retirement savings
When you have accounts here, there and anywhere, it’s hard to get a handle on where you stand. By rolling them over to your Betterment account and consolidating your retirement assets in one place, you can ensure your portfolio is appropriately diversified, monitor your progress, and rest assured that your investments aren’t competing or canceling each other out.
2. Avoid fees!
Every 401(k) plan comes with fees. If you have multiple 401(k)s, you are paying fees for all of those accounts! Betterment has fees too –but we use low-cost exchange-traded funds (ETFs) in our portfolios, helping to keep fees low.
3. Access personalized financial advice and service
Whether you want to talk investment strategy or review your retirement account, Betterment has CERTIFIED FINANCIAL PLANNER™ professionals and a customer support team that’s easy to reach when you need them. Your plan may include complimentary access to our team of CFPs® or you can book a call for a one-time fee.
Since you have access to a Betterment 401(k) through your employer, it could make sense for you to roll old 401(k)s into your Betterment 401(k) for all the reasons outlined above. But you do have other options:
- Leave it where it is.
- Roll it into an IRA (Individual Retirement Account), either with Betterment or another financial institution.
- Cash it out – this will come with taxes and potentially fees, and your money will no longer be invested (and potentially growing) for your retirement.
Ready to roll?
In just a few clicks, you can start the rollover process to Betterment and be set up with an appropriate investment strategy for you. You’ll receive a personalized set of rollover instructions via email, with no paperwork required by us.
Have a different kind of account to roll over? No problem. You can roll over your IRAs, pensions, 401(a)s, 457(b)s, profit sharing plans, stock plans, and Thrift Savings Plans (TSPs) to Betterment using the same simple process.
If you've already claimed your account, you can click here to start your rollover. If you have any questions along the way, our team is ready to help:
Send us an email: firstname.lastname@example.org
Give us a call: (718) 400-6898, Monday through Friday, 9:00am-6:00pm ET