Wealth Advisors
Rollover considerations
When you leave a job, you often have several choices for an old 401(k). Each has trade-offs worth understanding before you move anything.
Typical options
Leave the money in the former employer’s plan if permitted, roll it to a new employer’s plan, roll it to an IRA, or take a cash distribution, which can have tax and penalty consequences.
What to compare
Fees, investment choices, services, creditor protections, access to loans, and rules on withdrawals can differ between a plan and an IRA. A rollover that benefits a financial professional is a conflict worth asking about directly.
Mechanics
Direct rollovers move funds between institutions without passing through your hands. The IRS explains the rules and timing.
Questions worth asking
- 01What are the all-in costs in each option?
- 02Is the current plan’s investment lineup one I would choose?
- 03How would this affect my taxes this year?
- 04Who benefits financially from my choice?
Limits and risks
General education only. Please do not include account numbers or Social Security numbers in an initial email.
Related article: Four options for an old 401(k)
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