April Jolts Report, May Employment Numbers, A Major Reason Why We Do Not Recommend Leaving A 401k At An Old Employer, and Harrison Johnson, CFP®: Tax Filing vs. Planning
April Jolts Report
Although job openings declined in the recent JOLTs report they still remained elevated. The report showed job openings of 11.4 million in the month of April which was the second highest on record behind the upwardly revised 11.8 million in the month of March.
May Employment Numbers
Overall, the job numbers were good this morning as 390,000 jobs were recouped in the month of May. Leisure and hospitality continued to lead the way as there was a gain of 84,000 jobs.
A Major Reason Why We Do Not Recommend Leaving A 401k At An Old Employer
According to a recent estimate, at the end of 2021 nearly 25 million 401k accounts or about 20% of all 401k assets were counted as either lost or forgotten. This is a major reason why we do not recommend leaving a 401k at an old employer. Many times, your best option is to move the funds to an IRA rollover, so you take control and do not forget about those old accounts. If you are unsure if you had a 401k at a previous job, we highly recommend contacting your previous employer/HR to see if there are any funds in an account you may have forgotten about. If your old employer no longer exists, you do have a few different options. The National Registry of Unclaimed Retirement Benefits is a secure site that allows you to search for lost plans using your Social Security number. The National Association of Unclaimed Property Administrators operates a database that lets you search for plans by your first and last name. Your old employer may have rolled over your 401(k) into an IRA, in this case you can use FreeERISA to track it down. Finally, the Department of Labor’s abandoned plan database might offer some updated information on plans that have been or are about to be discontinued.
Harrison Johnson, CFP®: Tax Filing vs. Planning