Here are three reasons to consider doing some retirement account housekeeping.The successful growth of the 401(k) plan marked a change from employers taking care of employees via a pension plan to employees needing to do-it-yourself.When you have multiple accounts, it can be more difficult to understand how much money you have and where it is.Over time, you may even lose track of some older accounts.
If you have more than one 401(k), this limit applies to your total elective deferrals.
In addition, when you buy or sell an investment, a transaction fee may be charged.
If you consolidate accounts, over time you should have less total sales and purchases - this can help reduce transaction fees - and some companies reduce or waive fees when your account reaches a minimum size.
With self-employment income, these people can set up and contribute to an individual 401(k) even if they have another 401(k) at their job.
If you have more than one active 401(k) account, you need to be aware that the IRS's contribution limit for elective deferrals refers to your combined 401(k) accounts.
It is not uncommon to have multiple 401(k) accounts after switching jobs several times over a career.