Stop Leaving Your 401(k) on the Table: Why Unclaimed Retirement Accounts Can Cost You Thousands
Every year, millions of Americans walk away from jobs — and leave their 401(k) plans behind with them. Whether it’s because of a career change, a move, or simply forgetting about an old account, this oversight can quietly cost you tens of thousands (or even hundreds of thousands) of dollars over your lifetime.
Why It Happens
People leave 401(k) accounts behind for a few common reasons:
Out of sight, out of mind: Once you leave an employer, your focus shifts to the new role, and the old plan slips off your radar.
Not sure what to do next: The rollover process feels complicated, so it gets put off indefinitely.
Small balance, low urgency: A few thousand dollars doesn’t seem worth the hassle… until you realize what decades of compounding could have done.
The Cost of Doing Nothing
Here’s the reality: if you leave a 401(k) behind, you risk:
Higher fees – Many employer plans carry administrative or investment fees that quietly erode your balance.
Limited investment choices – Old plans often lack flexibility, meaning your money may not be working as efficiently as possible.
Lost track entirely – Over time, people lose statements, change email addresses, and forget logins, making it harder to even locate the account.
Missed consolidation benefits – Having your retirement savings scattered across multiple accounts makes it harder to manage risk, allocate investments, and plan withdrawals.
A $10,000 401(k) left untouched for 20 years at a modest 6% annual return could grow to over $32,000. Leave three or four of those behind over your career, and you’re talking about a serious impact on your retirement security.
What You Should Do Instead
When you leave a job, you generally have four options for your 401(k):
Leave it with your old employer’s plan.
Roll it into your new employer’s plan.
Roll it into an IRA for more flexibility.
Cash it out (almost never a good idea due to taxes and penalties).
For most people, consolidating accounts into a single, well-managed retirement plan — whether that’s an IRA or your new employer’s 401(k) — is the smartest move. It gives you:
Better oversight of your entire retirement portfolio
Potentially lower fees
More investment options tailored to your goals and risk tolerance
How We Help
At William Allan, we don’t just help clients find and consolidate old retirement accounts — we build tax-efficient, personalized investment strategies that make every dollar work harder. Our integrated tax and investment approach ensures you’re not just saving for retirement, but maximizing your after-tax growth so you can enjoy more of what you’ve worked for.
If you’ve left a 401(k) behind — or aren’t sure if you have — it’s time to bring it back into the fold. The sooner you take control, the more your money can do for you.
Let’s find it, roll it over, and put it to work.
Nothing contained herein this letter should be considered investment advice, research or an invitation to buy or sell any securities
