Old 401k accounts from past jobs add up. Combining them into one account makes retirement simpler.
Why consolidate multiple 401k accounts?
Holding several old 401k accounts from past employers means multiple statements, login portals, beneficiary forms, and fee structures to track. Consolidating them into one IRA, or one current 401k, simplifies your retirement picture, makes required minimum distribution calculations easier, and can reduce the chance of forgotten or lost accounts. It may also lower overall fees if old plans carry high costs. Use direct rollovers for each account to keep every transfer tax-free and avoid the one-indirect-rollover-per-year limit. For help organizing your accounts, call 1-800-MEDIGAP at 1-800-633-4427.
How to consolidate step by step
First, locate every old 401k, including any you may have forgotten; the Department of Labor and the federal Retirement Savings Lost and Found database can help track down missing accounts. Second, open one rollover IRA to serve as the destination, or confirm your current 401k accepts rollovers. Third, request a direct rollover from each old plan into that single account. Fourth, confirm each transfer arrives and invest the combined balance. Doing one rollover at a time keeps the process organized and ensures each transfer stays tax-free and penalty-free.