If you’ve switched jobs two or three (or five) times in the last decade — like most $100K–$200K professionals — there’s a decent chance you have an old 401(k) sitting somewhere collecting dust, high fees, and sub-par returns.
New reporting from the Wall Street Journal confirms what I’ve been seeing with readers: Americans have left behind more than $1.5 trillion in old 401(k)s and similar accounts, and the lost investment growth on that money is now measured in hundreds of billions.
For someone earning $150K–$200K today, a forgotten $40K–$80K balance from an early-career job could easily be costing you $250K–$600K+ in compounded growth by the time you retire.
That’s not pocket change. That’s the difference between retiring comfortably at 58 vs grinding until 68.
Why Six-Figure Earners Are Especially Vulnerable
We job-hop more than any other income bracket — chasing better titles, RSUs, and 20–50% raises. Every hop leaves a trail of orphaned accounts. (Related: 150K in 2025: Where You Rank Among Six-Figure Earners — the same career path that got you here is what scatters your retirement money.)
Most old employer plans:
- Charge 0.75–1.5% in hidden fees (vs 0.03–0.15% in a low-cost IRA)
- Offer limited, expensive investment options
- Get zero attention from you
Result? Your money grows at 4–6% instead of the historical 8–10% stock-market average.
The Three Costliest Rollover Mistakes I See Readers Make
The WSJ just highlighted the exact errors that trigger surprise taxes and penalties:
- Taking a check made out to you instead of direct trustee-to-trustee rollover The old provider withholds 20% for taxes. You have 60 days to replace it or owe taxes + 10% penalty.
- Missing the 60-day rollover window One late deposit and the entire amount becomes taxable income — instantly bumping many of us into higher brackets.
- Rolling traditional money straight into a Roth without planning the tax hit Do traditional → traditional IRA first, then convert strategically.
How to Fix This in Under 2 Hours
- Find every old account
– Free search: National Registry of Unclaimed Retirement Benefits
– Or use Capitalize.co — they’ll find and roll it over for free - Initiate a direct rollover Open a rollover IRA at Fidelity, Vanguard, or Schwab. Call the old plan and say: “Direct rollover to [New Custodian] FBO [Your Name].”
- Invest aggressively 100% low-cost total market funds. The market starts compounding the day it arrives.
Your 2025 Action Item (Do This Before Year-End)
Log in to whatever brokerage you use and search your email right now for “401(k)” or the names of your last 3–5 employers.
If you find even one old account, fix it this quarter while you’re already thinking about year-end finances.
Future you — the one who wants to coast into retirement instead of sprint — will thank you.
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