But in doing so, they've left behind inactive 401(k) accounts with average balances of $55,400, a new study reveals.
An estimated 1 in 5 U.S. workers have left behind or forgotten 401(k) retirement accounts, according to estimates by Capitalize, a financial services company.
While funds in old 401(k)s can still grow over time, they're typically considered inactive if you're no longer on the payroll.
The problem with inactive 401(k) accounts is that they are easily lost or forgotten over time, especially since most account holders don't regularly update their contact information with old employers.
To consolidate your 401(k)s, you'll first need to track down all of your accounts, including ones you may have forgotten about.
Persons:
they've, Cash, Kevin Brady
Locations:
U.S, New York City