$31.9 million in forgotten 401(k)s
An estimated $31.9 million worth of 401(k) balances have been abandoned by former employees and are sitting unclaimed.
Where this was said
Matthew's 401(k) Consolidation: Roth vs. Traditional Rollovers
At 42:15 · chapter starts 39:27
Matthew from Austin and his wife have accumulated 401(k) accounts at several different companies over their careers and want to simplify. He has gotten conflicting advice from Gemini and Schwab about how to handle the mix of pre-tax and Roth contributions [1] — Jade Warshaw "$31.9 million in forgotten 401(k)s: An estimated $31.9 million worth of 401(k) balances have been abandoned by former employees and are sit…" 42:15 . George Kamel explains the solution from personal experience: create two separate rollover IRAs — one traditional, one Roth — and request direct rollover checks from each old 401(k) made payable to the new custodian (in George's case, Vanguard). The checks should never be made out to the individual, to avoid triggering withholding or penalties. Jade adds a PSA: an estimated $31.9 million in 401(k) funds has been forgotten by former employees, and consolidating into an IRA you control eliminates orphaned-account fees and missed growth.
How to Consolidate Old 401(k)s the Right Way
Rolling over old 401(k)s is simpler than it looks: keep Roth with Roth and traditional with traditional, request direct rollover checks made out to the new custodian, and never cash them out yourself. George Kamel did this for his wife's 9-year Ramsey 401(k) and deposited the check with a phone photo.
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