Start Consolidating 401k loans

Consolidating 401k loans

Goldstein, vice president and private CFO at o XYgen, says the chance to have immediate money on hand can unfortunately be too tempting for some people in their 30s to pass up.

She says an IRA can often offer more attractive investment options than an employer 401(k) and also allows people eventually to convert their assets into a Roth 401(k), which can provide tax-free withdrawals if certain criteria are met.

"One of the biggest issues for this demographic is they have four or five small accounts, and so it doesn't seem like a lot of money to them." In fact, Lewis says that he recently met with a young married couple who each had multiple old 401(k)s, with roughly $3,000, $7,000, $8,000 and $9,000 in them respectively.

Rather than figuring out a way to consolidate those accounts, the couple instead decided to cash them out.

By Paul Menchaca NEW YORK (Main Street) --For professionals in their 30s, a decade-plus spent in the workforce not only means that they've held a number of different jobs at different companies but also that they've held multiple 401(k)s spread across their former employers.