Sun May 26 2024, by Tyler Gardner

Essential Tips for Women in Their Thirties to Save Thousands on 401(k) Fees

If you are a woman in your thirties and you want to save thousands of dollars a year on fees, then you need to do the following three things today.

1. Make a List of Current or Old 401(k)s

If you left a 401(k) at an old employer, don't worry, you're not alone. But do know that you most likely are being charged some hefty administrative fees just to have that money sit in that plan. Your employer might have been picking up the tab on those admin fees while you worked there, but once you left that job, they stopped paying those fees.

2. Do Not Liquidate or Sell Old 401(k)s

If you do leave behind an old 401(k), do not liquidate or sell that 401(k) unless you need that cash. If you are under 59 and a half, not only will you have to pay deferred taxes, but you will also be hit with a 10% penalty. That will probably negate any growth you've had.

3. Consider a Rollover IRA

Consider putting all of those old 401(k)s into a rollover IRA. This is an account that you open through Fidelity, Schwab, Vanguard, and it is not always the right idea. Do your research, but maybe you'll save a couple bucks on administrative fees, have better investment options, or just prefer having all of your accounts under one roof.

If nothing else, take this as a wake-up call to ensure you know where every single one of your accounts is, who’s controlling it, and how much they're charging you to control it. Because unfortunately, you could be losing thousands of dollars a year just to keep the plans sitting where they are.

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