Short Answer

Consolidating old 401(k)s can improve organization, reduce fees, and create better investment and tax planning opportunities—but it must be done carefully to avoid tax consequences or lost benefits.

Benefits of Consolidating Retirement Accounts

• Clearer big-picture view

• Easier rebalancing and risk management

• Fewer duplicate investments

• Simplified retirement withdrawals

When You Should Be Cautious

• You plan to use the Rule of 55

• Your 401(k) has unique low-cost investments

• You may need creditor protection

• You hold company stock with NUA potential

Common Mistakes

• Rolling to the wrong account type

• Ignoring tax implications

• Losing employer-specific benefits

• Making decisions without coordination

How Sentient Financial Helps

We evaluate each account individually, ensuring consolidation improves—not complicates—your retirement plan.

Disclosure: Educational only. No investment recommendations implied.