Employer Plan Rollover Services (401k, 403b, 457b)
Whether you’re transitioning jobs or entering retirement, we’ll help you evaluate your rollover options and guide you through a smooth, tax-efficient transfer of your retirement plan. We’ll explore whether a traditional or Roth rollover makes sense for your goals, ensure compliance with IRS rules, and align your new account’s investment strategy with your overall retirement plan.
401(k), 403(b) and 457(b) rollover questions
Should I roll over my old 401(k) to an IRA?
It depends. Your options are usually to leave the money in your former employer’s plan, move it to a new employer’s plan, roll it to an IRA or take a cash distribution. Each choice differs in investment options, fees, services, creditor protection and withdrawal rules. Cashing out is generally taxable and may bring penalties. Your plan may offer lower-cost investment options than an IRA. If you roll over to an account we manage, we may earn fees or commissions we would not otherwise receive, so we explain that before you decide.
How do I avoid taxes and penalties on a rollover?
A direct rollover, where your plan sends the money straight to the new account, is generally not taxed. If a check is paid to you instead, the plan usually withholds 20% for federal taxes, and you typically have 60 days to deposit the full amount to avoid tax and possible penalties. Rolling pre-tax money into a Roth account is a taxable conversion.
Is there any reason to leave money in my 401(k) or 457(b)?
Sometimes. Some employer plans allow penalty-free withdrawals if you leave your job in or after the year you turn 55, an exception that does not apply to IRAs. Withdrawals from a governmental 457(b) plan are generally not subject to the 10% early withdrawal penalty, but that advantage can be lost once the money is rolled into an IRA. Plan fees, investment choices and creditor protection matter too.
Do you help with 403(b) and 457(b) plans, not just 401(k)s?
Yes. We help people evaluate rollovers from 401(k), 403(b) and 457(b) plans, including plans offered by nonprofit and government employers. The rules for each plan type differ, so we review your plan’s specific options before suggesting a next step.
These answers are general education, not individual tax, legal or investment advice. Your situation may differ, so please talk with us or a qualified professional before acting.
Before you move an old plan
An old workplace plan is usually one piece of a bigger picture. Once it is moved, the next questions are normally retirement income, who inherits the account, and how it fits your broader investment plan. Talk it through with us before you move anything.