[USER]

If you have two 401k accounts, does your money compound faster if you combine them into one?

I did the math and it shows no difference between combining vs not combining but I’m also not that good at math so I wanted to double check here.

[Alicia]

No. But you’re doubling your maintenance fees/expenses, so unless they’re both current employers, I’d condense.

You also can’t contribute to an old employer 401k, so it just sits, so another reason to condense.

[Shawn]

It doesn’t change compounding but if you roll it out of a former employer it’s usually easier to administer, has lower fees and more investment options.

If you can earn more that would help compounding.

[Amy]

We were advised to wait to rollover until lower tax bracket as we are planning to retire at 50

[Ran]

As someone with 2 401K’s and a Roth IRA, it does not make a difference …

I’ve done cumulative and individual calculations across all 3 of my accounts and the return is exactly the same combination or individual

[Cameron]

a + b = b + a, so no but if there’s fees, it could be better to combine and I’d personally prefer to have everything in one place.

You can combine without penalties.

Another thing to consider might be what investment options are available in each but likely you can get something comparable in whichever you choose.

[Emanuele]

Access Investing For Early Retirement & Financial Planningfor insights and support in your retirement journey.

[Author]

Posts