Episode 208: Should I Consolidate My Orphaned 401(k)s?

On this episode of Cover Your Assets KC, we’re taking on the conversation about the elusive Orphaned 401(k), which sounds like a lonely account that’s been forgotten about in the back of a financial institution’s filing cabinet. But what is it, really? We’ll get to the bottom of that and explore why it’s such a problem if you have any of these little lost lambs of retirement savings in your portfolio.

If you're feeling overwhelmed by the thought of consolidating your 401(k)s, don't worry. We'll explore the best choices available to you, including the 60-day Rollover (no acrobatics required!) and the Direct to Custodian transfer (who knew transferring money could be so straightforward?). Plus, we'll dive into the Roth 401(k) and help you decide if it's a good fit for your financial goals.

Here are the questions we cover on today’s episode:

• What is an Orphaned 401(k)? (1:30)
• David details examples of why having an Orphaned 401(k) is such a problem. (2:40)
• Many people decide to consolidate their 401(k)s. David tells us what your choices and options might look like. (5:07)
• David shows us the difference between doing a 60-day Rollover or a Direct-to-Custodian transfer. (7:43)
• And you knew we wouldn’t finish a show without mentioning the word “Roth”. This time it’s in the form of analyzing what happens to Roth contributions in a 401(k) when you’re consolidating or dealing with an Orphaned 401(k). (10:03)

For additional resources or to contact David, visit us online at http://coveryourassetskc.com or call 913-317-1414.