FAQs: Rollovers and Lost 401(k) Accounts for Healthcare Professionals

1. What is a 401(k) rollover?

A rollover is when you move funds from your old employer’s 401(k) plan into another qualified retirement account, such as:

Your new employer’s 401(k) (if allowed), or
An Individual Retirement Account (IRA).

This helps you keep your retirement savings in one place and maintain tax-deferred growth.

2. Why should healthcare professionals consider a rollover?

Healthcare professionals often change employers (hospitals, clinics, private practices). Each job may come with a new retirement plan. Rolling over old accounts can:

Consolidate savings into one account for easier management
Potentially lower fees
Give you more control over investment choices
Reduce the risk of forgetting about an old account

3. What happens if I leave a 401(k) with a former employer?

You usually have four options:

Leave it where it is (if allowed)
Roll it into your new employer’s plan
Roll it into an IRA
Cash it out (not recommended due to taxes and penalties)

4. How do I find a lost 401(k) account?

If you’ve worked at multiple hospitals or practices, it’s easy to lose track. To locate an old account, you would have to:

Contact your former employer’s HR or benefits department
Check old pay stubs or W-2 forms for plan information
Use the National Registry of Unclaimed Retirement Benefits
Search the Department of Labor’s Abandoned Plan Database
Check with the plan administrator (often listed on old statements)

All of which, require a great deal of work, time, and effort! Our Rollover & Lost 401(K) Accounts services provide you with a compliant, structured, and digital process that saves you time, so you can focus on what matters most - your patients.

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5. What fees or taxes apply to rollovers?

Direct rollover (best option): Money goes directly from one plan to another, no taxes withheld.
Indirect rollover: You receive a check and must deposit it into a new account within 60 days. If not, it may be taxed and penalized.
Cash-out: Subject to income tax and, if under age 59½, a 10% early withdrawal penalty.

6. Should I roll over into an IRA or a new employer’s 401(k)?

It depends on your needs:

IRA: More investment choices, but no employer matching.
New 401(k): Keeps all retirement savings in one employer plan, may offer loan features, and may offer employer matching.

7. How often can I roll over funds?

There’s no limit on direct rollovers between 401(k)s and IRAs. However, indirect rollovers (where you receive the funds first) are limited to once every 12 months per IRA.

8. What if my old account balance is small?

If your balance is under $1,000, employers may cash it out and send you a check.
If it’s between $1,000 and $5,000, employers may roll it into an IRA for you.
It’s best to act quickly so you can decide where your money goes.

9. Who can help me with a rollover?

Your current employer’s HR or benefits team
A financial advisor, such as Cognis Retirement Group, that is familiar with healthcare professionals’ needs.
The plan administrator of your old 401(k)

10. What’s the first step I should take?

Make a list of all your past employers
Gather old statements or W-2s
Contact plan administrators to confirm balances
Decide whether to consolidate into an IRA or your new employer’s plan