"Rolling over a 401(k) is the closest adults get to taking their toys and going home."

401(k) Transfers & Rollovers

Your 401(k) may be one of the largest financial assets you've accumulated during your career.

So when you retire, change employers, or leave a company, deciding what to do with that account deserves careful consideration. Should you leave the money where it is? Move it to a new employer's plan? Roll it into an IRA? Take a distribution? At Taylor Retirement Solutions, we help individuals understand their available options and evaluate how an existing 401(k) fits into their larger retirement strategy. Before you move your retirement savings, understand what you're moving—and why.

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What Happens to Your 401(k) When You Leave Your Employer?

Leaving your employer doesn't necessarily mean you have to immediately move your 401(k).

Depending on the plan and your circumstances, your available options may include:

Leaving assets in your former employer's plan
Rolling assets into a new employer's eligible retirement plan, if permitted
Rolling eligible assets into an IRA
Taking a distribution
Using a combination of available options in certain circumstances

Each choice can have different implications involving investments, fees, services, withdrawal rules, taxes, creditor protections, and access to your money. There is no single option that's appropriate for everyone.

What Is a 401(k) Rollover?

A rollover generally involves moving eligible retirement assets from one retirement account or plan to another while following applicable requirements intended to preserve the assets' tax-advantaged status.

For example, someone leaving an employer may consider moving eligible 401(k) assets into an IRA.

But the ability to complete a rollover doesn't necessarily mean that you should.

The first step should be understanding your choices.

Before You Transfer Your 401(k), Ask These Questions

A retirement account shouldn't be moved simply for the sake of consolidating accounts or because you've left an employer. Before making a decision, consider:

What investments are available in my current plan?

What am I currently paying in plan and investment expenses?

What investment choices would be available elsewhere?

Do I need access to features or services offered by my current plan?

How would a transfer affect my overall investment strategy?

Are there differences in withdrawal rules or creditor protections?

Could there be tax consequences associated with the transaction?

How does this decision fit into my retirement income plan?

These details matter—particularly when you're approaching retirement.

Have Multiple Old 401(k)s?

Changing jobs several times during a career can leave you with retirement accounts at multiple former employers. Over time, keeping track of each account's investments, beneficiaries, fees, statements, and plan rules can become complicated. Consolidation may be worth evaluating in some circumstances—but convenience shouldn't be the only consideration. Before combining retirement assets, it's important to compare the features and potential advantages or disadvantages of the accounts involved.

The goal isn't necessarily to have fewer accounts. It's to make sure your retirement assets are positioned in a way that makes sense for you.

Retiring Soon? Your 401(k) Decision Becomes Even More Important.

During your working years, your 401(k) is primarily an accumulation vehicle.

Retirement changes the conversation. Now you may need to determine how those savings will eventually help fund your lifestyle. That can mean considering your anticipated withdrawals, other income sources, investment allocation, risk tolerance, tax considerations, required distributions when applicable, and how long your assets may need to last. A 401(k) decision therefore isn't simply about where your money is held.

It's about the role that money will play in your retirement.

Your 401(k) Took Years to Build. Don't Rush the Next Decision.

Changing jobs or retiring can create a long list of decisions. What happens to your retirement savings should be one of the decisions you make carefully. Taylor Retirement Solutions can help you understand your 401(k), compare your available options, and determine how those assets may fit into your overall retirement strategy.

Before rolling assets from an employer-sponsored retirement plan into an IRA or another retirement plan, carefully consider all available options and their respective features, including investment choices, fees and expenses, services, withdrawal provisions, tax treatment, and creditor protections. Taylor Retirement Solutions does not provide tax or legal advice. Consult qualified tax and legal professionals regarding your individual circumstances.