You changed jobs. Everything moved with you, except maybe your 401(k).

And now you’re wondering:

“What do I actually do with this thing?”

Online, you’ll find a million takes. Some are solid advice but many focus on whether to move your account, not why. And perhaps most importantly…

→As of 2025, there's an estimated $1.7 trillion sitting in over 29 million forgotten retirement accounts across the U.S.

These accounts are just sitting there. Don’t be the person who leaves their hard-earned money behind. So let’s walk through your options and why each one matters.

First… What is a Rollover?

A rollover is a tax-free transfer from one retirement account to another. It keeps your money moving without penalties.

→ Direct Rollover​
This is when funds move directly from one custodian to another. It’s clean, simple, and unlimited. No taxes withheld, and no risk of penalties.

→ Indirect Rollover​
This is when the check is sent to you, and you have 60 days to deposit it into the new account. These come with a mandatory 20% withholding, and if you miss the 60-day deadline, you’ll owe taxes (and possibly a 10% penalty if you’re under 59½).

Plus, indirect rollovers are allowed only once per 12 months.

Option #1: Roll It Into an IRA

This is one of the most common moves. When you roll your 401(k) into an IRA, you get full control of your account.

Why people choose this:

• Access to a wider range of investments
• Potentially lower costs (no 401(k) admin fees)
• Easier to convert portions to Roth over time

What to watch for: If you’re doing a Backdoor Roth IRA, having pre-tax IRA money can trigger the Pro Rata Rule and mess up the conversion. It’s important to know how this might impact future planning.

Option #2: Roll It Into Your New 401(k)

If your new employer’s 401(k) is solid, this can be a great option too.

Benefits include:

• Keeping all your retirement funds in one place
• Possibly lower fees or better fund options than your old plan
• The new plan may allow loans, Roth contributions, or brokerage access

Plus, 401(k)s have federal ERISA creditor protection, which can be stronger than IRA protection depending on the state.

One key detail: Some plans allow penalty-free withdrawals under the Rule of 55 if you separate from service in the year you turn 55 or later. But not all plans allow this for rolled-in funds. Always check with the plan administrator to be sure.

Option #3: Leave It Where It Is

Sometimes, doing nothing could actually the best move.

Why this might make sense:

• The old plan offers great investment options or low fees
• You’re eligible for the Rule of 55 through the old employer funds
• You just like the plan and don’t need to make a change

Just don’t forget about it. Letting an account sit untouched can lead to neglect and that’s how people lose track of thousands in retirement savings.

Before moving anything, compare the fund lineup and all-in fees. A rollover should support your plan, not increase your costs unintentionally.

When a Rollover Might NOT Be The Best Move

Sometimes rolling money over can actually hurt you. Examples include:

• You want to preserve Rule of 55 access.
• You plan to use NUA on company stock.
• Your old plan has institutional share classes cheaper than retail funds.
• You’re doing a Backdoor Roth and want to avoid pro-rata issues.
• You prefer 401(k) creditor protection under ERISA.

Sure, there may be some limitations. But it's vital to know that leaving things as is can create some serious benefits too.

The Bottom Line

Your old 401(k) still belongs to you but it’s easy to lose track of it if you don’t have a plan.

Whether you roll it over, leave it, or move it to your new job’s plan, make that decision on purpose. What matters most is why you make that move and how it fits into your bigger financial picture.

Your retirement money deserves attention, no matter where your career takes you! ​

If you want help evaluating which path fits your situation, I’m here.

Book a call here.​

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