Thinking of retiring or leaving your job? We have answers about your 401(k)

Address: 10503 Timberwood Circle, Suite 205, Louisville, KY, 40223, US
Telephone: 502.420.9912

There are 4 main options to consider when you retire, leave your job, or need access to your retirement funds. Let’s go over them.

Questions? Let's Talk

Leave the Money in the Old 401(k)
Do nothing. The account stays where it is.

Pros:

✅ No paperwork

✅ No taxes or penalties

✅ Still grows tax-deferred

✅ Some employer plans have very low fees

Cons:

❌ Harder to keep track of multiple accounts

❌ Limited investment choices

❌ No new contributions allowed

❌ You can’t borrow from it anymore

❌ No local advisor

❇️ Best for: Someone happy with the plan’s fees and investments who doesn’t want to deal with a rollover right now.

Roll It Into Your New Employer's 401(k)

Transfer the old 401(k) into your new company's plan.

Pros:

✅ Keeps all retirement money in one place

✅ Still tax-deferred

✅ Easy to manage

✅ Maintains ability to do a future "backdoor Roth IRA" (important for higher earners)

Cons:

❌ Limited to new plan's investment options

❌ Some plans have higher fees

❌ No local advisor

❇️ Best for: Someone who wants simplicity and is happy with the new plan options.

Roll It Into an IRA (Traditional IRA Rollover)
Move the money to an IRA

Pros:

✅ Much wider investment choices

✅ Dedicated advisor for guidance

✅ Still tax-deferred

✅ Full control over investments

✅ Can be consolidated with other IRAs

Cons:

❌ Slightly more responsibility to manage

❌ Can complicate "backdoor Roth IRA" strategy due to pro-rata rule

❇️ Best for: Someone who wants more control, lower costs, and better investment options.

Cash It Out (Usually a bad idea)
Withdraw the money to your bank account

What happens:

❌ You owe income tax on the full amount

❌ If under age 59 ½ , you owe an additional 10% penalty to the IRS

❌ You lose decades of compound growth

⚠️ Example: A $50,000 401(k) could shrink to ~$30,000 after taxes and penalties.

❇️ Best for: Almost nobody, except in true financial emergencies.

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Questions about your options? We have answers.

Fill out the form to get in touch with our team. We offer no-obligation consultations to go over your personalized situation.

Securities offered through Cetera Wealth Services, LLC, member FINRA/SIPC. Advisory Services offered through Cetera Investment Advisers LLC, a registered investment adviser. Cetera is under separate ownership from any other named entity. Before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgements, required minimum distributions and possession of employer stock. Please view the Investor Alerts section of FINRA website for additional information.

Address

10503 Timberwood Circle, Suite 205, Louisville, KY 40223

Schedule A Complimentary Consultation

Email Us ->

Phone

502.420.9912

Thinking of retiring or leaving your job? We have answers about your 401(k)

Leave the Money in the Old 401(k)
Do nothing. The account stays where it is.

Roll It Into Your New Employer's 401(k)

Transfer the old 401(k) into your new company's plan.

Roll It Into an IRA (Traditional IRA Rollover)
Move the money to an IRA

Cash It Out (Usually a bad idea)
Withdraw the money to your bank account

Do a Direct Rollover

When rolling to a new 401(k) or IRA, make sure it’s a direct rollover (trustee-to-trustee transfer).

Questions about your options? We have answers.

Address

Schedule A Complimentary Consultation

Email Us ->

Phone

Home →
Contact Us →
Why CCM? →

502.420.9912

Thinking of retiring or leaving your job? We have answers about your 401(k)

Leave the Money in the Old 401(k) Do nothing. The account stays where it is.

Questions about your options? We have answers.

Address

Schedule A Complimentary Consultation

Email Us ->

Phone

Home → Contact Us → Why CCM? →

502.420.9912

Leave the Money in the Old 401(k)
Do nothing. The account stays where it is.

Home →
Contact Us →
Why CCM? →