If you left your wallet in an Uber with $500 in it, wouldn’t you try to get it back?
Turns out that’s not what many millennials are doing when they switch jobs.
The strongest job market in decades, ironically, can actually be having a negative impact on people’s retirement savings, especially millennials. Money in 401(k) plans sits idle as people move on to new job opportunities. According to a recent study, 59 percent of millennials between the ages of 25 and 34 with tens of thousands of dollars saved had at least one 401(k) at a previous employer. The same was true for 41 percent of investors overall.
Leaving money on the table is not something millennials like to do. They are conscientious about their money, yet many find it a hassle to move their retirement savings with them.
One solution is to move your funds from your 401(k) to a rollover IRA. By directly rolling over assets from your employer-sponsored retirement plan into an IRA Rollover, you'll defer your tax liability and may be able to completely avoid penalties.
Firstrade offers Rollover IRAs with no fees: no annual fee, free account set-up and no maintenance fees. In addition, Firstrade has eliminated commissions for all stocks, options, mutual funds and ETFs, so you can trade stocks in your IRA for $0 a trade. It takes just minutes to open a new Firstrade account and about four to five business days to transfer funds via check from an existing 401(k) into a rollover IRA.
Just another reason millennials choose Firstrade.