Retirement guidance for job changers
See what happens to the accounts you already hold, compare each rollover path on the same terms, and decide without pressure.
Informational only. This site does not provide financial, investment, or legal advice.
Pick a path to see what usually changes. Cashing out is a fourth option, and it may trigger taxes and penalties.
Steps 1, 2, 3
Before the first paycheck from a new employer lands, three tasks decide whether your retirement savings keep compounding or quietly stall. None of them require you to move money today.
Request the plan's fee disclosure and confirm how much employer money is vested. Unvested balances can be forfeited after you leave, so the timing of your last day matters.
Open the rollover checklistLeaving the account, rolling to an IRA, and rolling into the new employer plan each carry different fees, investment menus, and creditor protection. A rollover is not taxable when handled correctly, while a cash-out can trigger taxes and penalties.
See the side-by-side comparisonEnroll as soon as the waiting period ends and set a deferral you can hold for a full year, even if it starts small. Consistent contributions, not a perfect plan, keep savings on track.
Estimate your monthly contributionRollover options
When you leave a job, the money in your old 401(k) usually stays in the plan until you decide. Each path carries different fees, investment choices and creditor protection. Open a row to see the trade-offs and the tax details.
| Option | Fees | Investments | Trade-offs |
|---|---|---|---|
| Keep in old 401(k) | Record-keeping fee continues | Old plan menu only | |
Good fit whenYour balance is small, the plan fees are low, and the menu holds funds you would pick anyway. Watch out for
Tax noteLeaving the balance in place is not a taxable event. Later withdrawals can be taxed, and a payout before age 59½ may carry a penalty. | |||
| Roll to an IRA | Depends on the custodian | Widest menu | |
Good fit whenYou want more fund choices, lower-cost index options, or to combine several old accounts in one place. Watch out for
Tax noteA direct trustee-to-trustee transfer is not taxable. With an indirect rollover, the plan withholds 20% and you must replace the full amount within 60 days to avoid tax. | |||
| Roll to new 401(k) | New plan fee schedule | New plan menu only | |
Good fit whenYou want one statement, payroll contributions that continue automatically, and ERISA plan protections. Watch out for
Tax noteA direct rollover between plans is not taxable. Confirm the plan accepts incoming amounts before you request a check or close the old account. | |||
A gap between paychecks is the most common reason contributions stop. Small, steady amounts keep the balance compounding while you decide whether to leave the old 401k alone, roll it to an IRA, or move it into the new employer plan. A rollover is not taxable when it is done correctly, but cashing out may trigger taxes and penalties.
Estimates are for illustration only. This site provides informational guidance and does not offer financial, investment, or legal advice. Consult a qualified professional about your own situation.
Most answers depend on your old plan's vesting schedule and your new employer's eligibility rules. Read the four short answers below, then confirm the details with your plan administrator.
Vesting is the share of your employer's contributions you actually own. Your own salary deferrals are always 100% yours, but employer match money may follow a graded or cliff schedule. Check your summary plan description to see what percentage you keep on your last day.
Many plans impose an eligibility waiting period, often 30 to 90 days, before you can defer. Until you qualify, your old account keeps growing or you can roll it into an IRA. Ask your new HR team for the exact enrollment date so you do not miss the first matching payroll.
Only the vested portion can be rolled over. Unvested employer dollars usually return to the employer when you separate, sometimes after a short break-in period. Your statement should list vested and unvested balances separately.
Most plans require repayment soon after you leave, otherwise the unpaid balance is treated as a distribution. That can trigger income tax plus a 10% early-withdrawal penalty if you are under 59½. Review the loan terms before your final paycheck.
A direct trustee-to-trustee transfer usually settles within one to three weeks. Keep the confirmation letter and check that the receiving account shows the same balance. A 60-day indirect rollover involves more paperwork and possible withholding.
Contact
Send a question about an old 401(k), a new employer plan, or keeping your contribution habit going after a job change. We answer with general information you can take to a qualified professional.
This site is for informational purposes only. It does not provide financial, investment, or legal advice.
Prefer to read first? Compare rollover options or check the tax questions.