The theme this week on the One Minute Retirement Tip podcast is How to get the most out of your 401k plan. You may be saving and getting the match, but are you fully taking advantage of all the amazing benefits that your 401k has to offer you? 

Today, I’m talking about how you can use your 401k to simplify your finances by consolidating your old 401k and retirement plans into your current 401k plan.

A couple weeks ago I talked about the multitude of benefits with consolidating your investment accounts. But most people who are currently saving in their 401k at work don’t realize that their plan often allows you to rollover other similar accounts into your current 401k. And it doesn’t just include like-kind 401k accounts.

Most 401k plans will accept rollovers from any account with similar tax treatment as the 401k. So this would include old 401ks, SIMPLE IRAs, SEP IRAs, Traditional IRAs and Roth IRAs - often all of these accounts are eligible to be rolled over into your current 401k, making it easier to track your accounts and simplify your finances. 

A couple words of caution here...only consolidate into your 401k if the plan fees are reasonably low and the plan investments are not terrible. If you work for a large employer with thousands of employees, you’re likely to have a low cost plan with solid investments. But if you work for a smaller employer, fees and fund quality are an issue, so proceed with caution. 

That’s it for today, Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance