Three Reasons to Roll Over Your 401(k)

Employees often don’t rollover the 401(k) retirement accounts they have earned and, with the current economic climate, it’s very important to do so, according to Farida Caruso, a Financial advisor at .

“A lot of people are being laid off are about to retire and people are leaving their 401(k) with their previous employers and what they need to do is roll it over,” she said. “That way, they're in control."

She gave several reasons to roll over a 401(k):

• To minimize risk of losing it — Leaving a 401(k) with a past employer, a person is at risk of losing the if the company fails.

• To control the investments — If the 401(k) has not been tended to for years, the account might be hold risky investments better suited for a younger person.

• To consolidate the accounts — With so many people being laid off and switching jobs, it's possible that an employee has more than one 401(k) account that should be consolidated into one.