Considering a 401(k) rollover? Consider your options first.

If you decide a 401(k) rollover is right for you, we're here to help. Call a Rollover Consultant at 866-855-5636.

One great thing about a 401(k) retirement savings plan is that your assets are often portable when you leave a job. But what should you do with them? Rolling over your 401(k) to an IRA (Individual Retirement Account) is one way to go, but you should consider your options before making a decision. There are several factors to consider based on your personal circumstances. The information provided here can help you decide.

Leave your money in your former employer's plan, if your former employer permits it

Choosing this option means you don't have to make an immediate decision about where to move your savings. Your account stays subject to your previous employer's plan rules, including investment choices, costs, and withdrawal options.

Roll over your money to a new 401(k) plan, if this option is available

If you're starting a new job, moving your retirement savings to your new employer's plan could be an option. A new 401(k) plan may offer benefits similar to those in your former employer's plan. Depending on your circumstances, if you roll over your money from your old 401(k) to a new one, you'll be able to keep your retirement savings all in one place. Doing this can make sense if you prefer your new plan's features, costs, and investment options.

Roll over your 401(k) to a Traditional IRA

If you're switching jobs or retiring, rolling over your 401(k) to a Traditional IRA may give you more flexibility in managing your savings. Traditional IRAs are tax-deferred1 retirement accounts.

Roll over your 401(k) to a Roth IRA

If you're transitioning to a new job or heading into retirement, rolling over your 401(k) to a Roth IRA can help you continue to save for retirement while letting any earnings grow tax-free.2

Take a cash distribution

While withdrawing all of your money may seem like a good idea in the short-term, be sure you understand the consequences before you do. Money withdrawn will be taxable and subject to a mandatory 20% federal withholding rate. You may also face early withdrawal penalties.


Take the next step

  • Take the next step

    Once you've made your decision, and if you're interested in a Schwab IRA, our team of Rollover Consultants can help. Call 866-855-5636.

We're here to help