Did you leave something behind with your last employer?

Jul 25, 2018 | Virginia Olson | @volson

box of office supplies

Millions of people who leave employment fail to make arrangements for their 403(b) or 401(k) accounts. Leaving retirement accounts behind with an old employer may not be a good idea for a variety of reasons.

 Losing track of old plans

Due to mergers, acquisitions, moving, bad memory, etc. people can, and do, lose track of money held in old retirement plans. Furthermore, if a previous plan balance is between $1,000 and $5,000 it could be forcefully transferred out of an old employer’s plan and into an Individual Retirement Account (IRA), or the balance could be subject to a forced cash out. When past employers do not have current mailing addresses, employees are often unaware of when these changes happen.

 Managing just one plan is easier

With all your money in one plan, you don’t have to receive multiple notices or worry about missing critical notices. It’s easier to keep your intended asset allocation on track and rebalancing your portfolio is a simpler task. With one plan, you’re more likely to keep your address and email up-to-date. And in the event of your death, it’s easier for beneficiaries to deal with just one plan administrator.

Avoiding high fees

As a retirement plan fiduciary, Mayo Clinic must hold to a high standard of care and diligence in carrying out their obligation to continuously monitor fees and expenses paid by the Mayo 403(b)/401(k) Plan. Because of their ability to negotiate as a large group investor, Mayo can ensure that fees and expenses of the Mayo 403(b)/401(k) plans are very reasonable.

 Are you ready to roll?

Fidelity will help you! If you’re ready to roll money from an old 403(b) or 401(k) account into your current Fidelity 403(b)/401(k) account, you can start the rollover process online by logging into your Fidelity account at www.netbenefits.com/atwork and selecting ‘Rollovers’ or you can call Fidelity at 800-343-0860. You may also have to contact your old 403(b)/401(k) plan administrator to complete forms to release your funds, but Fidelity can help guide you through the entire process step-by-step.

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