Leaving your 401(k) with your former employer might seem like the easiest option, but it comes with drawbacks:

Limited Control:

• Your former employer sets the rules for the plan including:
• Investment options.
• Withdrawal restrictions.
• Vesting rules.

Higher Fees:

• Some plans charge higher fees for former employees, which can eat into your retirement savings.

Lost Track of Funds:

• If your employer changes investment providers or moves to a new address, tracking down your 401(k) later can be a hassle.

Inability to Contribute:

• You won’t be able to add more money to the account, limiting your ability to grow your savings.

Multiple Accounts:

• If you change jobs frequently, you could end up with multiple 401(k)s scattered across different employers, making it harder to manage your retirement funds.

Company goes out of business:

• Unvested contributions by either employer or employee will be lost.
• If your employer fails to deposit your latest contributions, they will be at risk.