401(k) Rollover Solutions

Do I have to roll over my 401(k) immediately after leaving a job?
‍You typically have several options: leave it in your former employer’s plan, roll it into your new employer’s plan (if allowed), roll it into an IRA, or cash it out. An eligible rollover completed under the applicable rules can preserve tax advantages; a Roth conversion can create taxable income, and an ineligible payment or missed deadline can trigger tax or penalties. Before choosing, review an annuity versus leaving money in a 401(k) and 401(k)-to-annuity rollover tax questions.

Will my employer with hold taxes if I take a check?
‍An eligible taxable employer-plan distribution paid to you generally has mandatory 20% federal withholding. A direct rollover, including a check payable to the receiving trustee, generally avoids that withholding; it does not make a taxable Roth conversion tax-free. If you use an eligible 60-day rollover, you must replace withheld funds from other money to roll over the full amount. IRA withholding rules differ.

How long do I have to complete a rollover?
An eligible distribution paid to you generally must be rolled over within 60 days, although IRS exceptions or waivers may apply. Required minimum distributions and certain other payments cannot be rolled over. The receiving employer plan must accept the rollover; confirm account type, eligibility, deadlines and tax treatment before moving funds.

Next Step: Schedule a retirement savings review to determine whether a rollover makes sense for you.