If you’ve worked more than one job in your career, chances are you’ve got an old 401(k) still sitting with a former employer. Maybe it’s collecting dust. Maybe you’ve forgotten it exists.
Here’s the problem: thanks to recent regulatory changes — including moves under former President Trump and updates from SECURE 2.0 — those “out of sight, out of mind” accounts might suddenly become a bigger deal than you think.

1. New Investment Options… and New Risks

Trump-era guidance opened the door for 401(k) plans to offer alternative assets like private equity, real estate, and even cryptocurrencies.
Sounds exciting? Maybe. But here’s the catch:

• These investments can carry higher fees and more risk than your typical index fund.

• They’re often illiquid — meaning your money is locked up for years.

• And older plans aren’t always set up to manage them well.

If you’ve got an old 401(k), you could see changes in your investment lineup without realizing the risk profile just shifted.

2. The Catch-Up Contribution Shake-Up

Starting in 2025, if you’re age 60–63, you can put up to $11,250 in extra “catch-up” contributions into your 401(k). That’s on top of the standard limit — a big win if you’re behind on retirement savings.

But here’s the curveball: starting in 2026, if you earn more than $145,000 in FICA wages, those catch-up contributions will have to be Roth (after-tax).

• This changes the tax benefits of saving.

• And if your old 401(k) gets merged or reactivated, you could be hit with this requirement unexpectedly.

3. Auto-Enrollment & Auto-Portability — Not for Everyone

New 401(k) plans will automatically enroll employees at 3%, increasing annually to at least 10%. They’ll also include automatic portability, meaning small balances move with you when you change jobs.
Sounds great — but older plans don’t have to follow suit.
If your old 401(k) isn’t touched, you could be stuck with high fees, outdated funds, and no easy way to consolidate.

4. Expanded Eligibility — But Not for Old Plans

Starting in 2025, part-time employees who work at least 500 hours for two years must be allowed into their employer’s 401(k). This is great for coverage — but it won’t magically update your old account.
If that account isn’t actively managed, it’s still drifting along without any benefit from the new rules.

Why This Matters Even More for Old Accounts

• Fees that quietly eat returns — Outdated funds often cost far more than modern low-cost options.

• Misaligned risk — Your portfolio might not match your goals anymore.

• Tax surprises — The Roth-only catch-up rule could derail a pre-tax savings plan.

• Missed opportunities — Enhanced contribution limits and better investment menus won’t help you if your account is sitting idle.

What to Do Right Now

1. Find every old 401(k) — You’d be surprised how many people have “lost” accounts worth tens of thousands.

2. Review your investments — Look for high expense ratios, poor performance, or over/underexposure to certain assets.

3. Consider a rollover — Moving old accounts into an IRA or your current plan can give you more control, lower fees, and better tax planning options.

4. Plan for the 2026 rule change — Especially if you’re in that 60–63 age bracket, coordinate contributions now before Roth-only catch-ups kick in.

5. Get professional eyes on it — Regulatory changes can be confusing, and a small mistake could cost you in taxes or returns.

Bottom line:
An old 401(k) isn’t “set it and forget it” money anymore. With new laws reshaping contribution rules, tax treatment, and investment options, what you don’t know can hurt you.

At Compound Advisory, we help clients align every account — old or new — into a coordinated, tax-aware strategy so you’re not leaving returns (or tax savings) on the table.

→ Click here to schedule your free 401(k) Quick Check — no cost, no pressure, just clarity.