Geoffrey Sanzenbacher

I was just talking to my sister-in-law about this.

She texted me like, oh, you know, I've already cashed out two different 401ks, but I want to roll over this one to my next employer.

How do you do it?

And I was like, well, it's actually pretty complicated.

You can, you know, do A, B or C. Okay.

Yeah.

So basically, you can leave your balance in the previous employer's plan.

As long as it's bigger than $1,000, they should just hold on to it.

That is not a terrible option if you have an employer with a good plan.

So that's option one.

You could roll over balances to the new employer's plan.

That's probably the best option because you know where your money is.

It's all in one place.

Then you can roll over your balance to an IRA.

This is probably like the second best option.

I say second best because IRAs typically have higher fees than a 401k.

Just because when you get an IRA, you're an individual and you don't have much market power.

And so they charge you retail fees, tens of thousands of dollars if you invest a lot.

It's not going to be cheap.

But it's still a good option.