What Should You Do With Your Old 401k?

If you’ve ever left a job and wondered what to do with that old 401k account, you’re not alone, and today’s episode is for you! In this listener mailbag edition, Steve answers a question from William, who’s trying to decide whether to leave his 401k where it is or roll it into an IRA. It sounds simple, but the implications can be huge.

Steve breaks down the benefits of rolling over your account, like gaining access to more investment options, reducing hidden fees, and avoiding the chaos of forgotten accounts scattered across past employers. He also highlights the tax pitfalls of doing it wrong and shares what most people miss about direct vs. indirect rollovers. And if you’re a publicly traded utility employee, Steve reveals a special strategy that might let you manage multiple 401ks without moving them at all. Changing jobs or tidying up old accounts? Tune in to find out how to do it right and avoid some potentially costly pitfalls.

Here’s some of what we discuss in this episode:

🔄 Rollover or leave it? Some pros and cons

🔍 Hidden 401k fees most people never see

🧾 How to avoid surprise tax bills during a transfer

❌ Why “set it and forget it” could cost you

🧩 Consolidating smart, not blindly

0:00 – Intro + Listener Question

2:03 – Main Benefits of a Roll Over

5:51 – Tax Implications to Avoid

7:58 – What To Invest in Next?

9:13 – Special Options to Unlock

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