Retirement
401(k) Rollovers
Changing jobs or retiring? We'll walk you through your options and help you move your savings without unnecessary taxes or penalties.
At a glance
- When
- After leaving a job
- Best method
- Direct rollover
- Tax on a direct rollover
- None
- Indirect deadline
- 60 days
- Cashing out early
- 10% penalty under 59½
How it works
When you leave an employer, you can usually leave the money in the old plan, move it to your new employer's plan, roll it into an IRA, or cash it out.
A direct rollover moves the money straight from your old plan to your new account. No taxes are withheld and it doesn't count as income.
If the plan mails the check to you instead, it withholds 20% for taxes, and you have 60 days to deposit the full amount to avoid taxes and penalties.
Who it's for
- People who changed jobs and left a 401(k) behind
- Recent retirees deciding what to do with their plan
- Anyone with several old plans to combine
- Savers who want to protect money from market swings
Good to know
- Cashing out usually means paying income tax, plus a 10% penalty if you're under 59½.
- Rolling into an IRA can open more choices, including annuities that protect principal and offer lifetime income.
- Leaving money in the old plan can make sense if it has low fees or features you value. We'll help you compare.
- Some new lump-sum annuity accounts offer a premium bonus, up to 20% on select products.
Ready to talk it through?
Book a free 15-minute call by phone or video. No obligation and no pressure.