{"id":13950,"date":"2022-07-05T10:19:24","date_gmt":"2022-07-05T15:19:24","guid":{"rendered":"https:\/\/www.fitbux.com\/articles\/?p=13950"},"modified":"2026-06-16T22:22:24","modified_gmt":"2026-06-17T03:22:24","slug":"401k-rollover","status":"publish","type":"post","link":"https:\/\/www.fitbux.com\/articles\/401k-rollover\/","title":{"rendered":"401(k) Rollovers: The Ultimate Guide"},"content":{"rendered":"

Many of us have a 401(k) which is a good thing. However, once we leave our employer we make the mistake of leaving the 401(k) with our old employer.  Instead, you should do a 401(k) rollover.<\/p>\n

In this guide, you will learn about 401(k) rollovers, how to do one, and if you should rollover your money or not.  If you are just starting your journey to understanding 401(k)s, the check out our beginners guide to 401(k)s<\/a>. <\/p>\n

What is a 401(k) Rollover<\/h2>\n

A 401k rollover is available to you once you leave your current job.  Typically, you rollover your money into an individual retirement account (IRA) which is what we typically recommend doing.  This is called \u201ctaking your money with you\u201d and I discuss the benefit of doing this later on in the article.<\/p>\n

In short, a 401k rollover simply means moving your money from one place to another because you view one location more favorably than the other.<\/p>\n

Note: Some companies allow you to do an in-service rollover. However, most don’t and you often times have to be older than 55.<\/p>\n

401(k) Rollover Options<\/h2>\n

There are for main options you have when you leave your employer:<\/p>\n

    \n
  1. Rollover your 401(k) to a Traditional IRA<\/li>\n
  2. Rollover your 401(k) and do a Roth Conversion<\/a><\/li>\n
  3. Rollover your old 401(k) into your new employer\u2019s 401(k) plan<\/li>\n
  4. Keep your old 401(k) with your former employer<\/li>\n
  5. Cash out your 401(k)<\/li>\n<\/ol>\n

    As I mentioned earlier, you\u2019ll most likely want to rollover your 401(k) to an IRA.  There are 3 primary reasons:<\/p>\n