In fact, Lewis says that he recently met with a young married couple who each had multiple old 401(k)s, with roughly $3,000, $7,000, $8,000 and $9,000 in them respectively. Rather than figuring out a way to consolidate those accounts, the couple instead decided to cash them out. "They said that they didn't think it was a lot of money," Lewis says. "I said, 'That's $30,000, buddy.'" Steven B. Goldstein, vice president and private CFO at oXYgen, says the chance to have immediate money on hand can unfortunately be too tempting for some people in their 30s to pass up. "For people in this age group there are other cash-flow needs -- maybe they recently bought a home or just had kids and they are cash-flow strapped," Goldstein says. "They see this as a source of money if they cash
Walsh gives four different approaches people can take with their old accounts: leave them in place, roll them over into a current company's 401(k), roll them into an IRA or take a distribution in cash. The last option is strongly discouraged by Fidelity, Walsh notes, because of the tax hit and potential withdrawal penalties.