From Yahoo Finance: 2025-06-01 07:00:00

Rolling over your 401(k) can be a more complicated process than expected, often involving mailing funds and leading to delays in investing. A study by PensionBee found that even brief delays can result in significant financial losses, with an 8-week processing delay potentially costing $76,000 in lost returns over 30 years for a $100,000 balance.

These delays could compound, leading to a $37,512 loss over 30 years from a two-week delay with a $100,000 balance. Additionally, forgetting to roll over old accounts can result in fees that eat away at savings, especially for balances of $7,000 or less. Employers may automatically force out small balances into poorly performing IRAs, depleting savings entirely.

Romi Savova, founder and CEO of PensionBee, warns that there are hidden fees associated with retirement accounts, with former employees often bearing the burden. Taking an active role in the rollover process is crucial, as delays can be costly. Choosing a provider that offers digital-first solutions and excellent customer support is essential when rolling over a 401(k) balance.

Delaying your 401(k) rollover can have significant financial consequences, with the risk of lost returns and unclaimed accounts. Savova emphasizes the importance of taking action to minimize downsides and choosing a provider that becomes a partner in your retirement journey. Consider more than just fees when selecting a provider for your rollover.

Read more: Delaying Your 401(k) Rollover Could Cost You $76K, Study Finds