401(k) Rollover

What Are Your Options for Your 401(k) Plan Assets When You Change Jobs?

When changing jobs, you generally have four options for your 401(k) plan assets: leave the money in your old employer's plan; move it directly into the comparable Roth or traditional account in your new employer's plan; roll it directly or indirectly into a comparable Roth or traditional IRA; or take a cash, or "lump-sum," distribution. Certain of these options may result in sizable tax bills, while others could limit your investment choice and control. More importantly, different options can have dramatically different effects on your retirement savings.

In addition to the rollover alternatives, you may also be able to convert traditional retirement assets to a Roth account. However, the option to convert would involve additional considerations that could not be readily addressed in a tool such as this, so you should weigh that possibility separately.

To see the potential effects of the rollover options on your current and future retirement savings, answer the following questions, and then click Submit. After you review the results, be sure to consult your tax professional about your situation before you act.

These calculations are based in part on input provided by the plan sponsor and/or plan participant. Newport Group and its affiliates are not responsible for the accuracy or appropriatness of such input for any particular plan or for any plan participant's financial circumstances. Different investments involve different levels of risk and every investor has their own comfort level with risk. Investors should consult with their financial advisor to determine their personal risk tolerances and what level of portfolio risk may be appropriate for their circumstances before making investment decisions.

These calculations are not intended to be considered as investment, tax, or legal advice. The laws and regulations governing these matters are complex and subject to change. Please consult your investment, tax, and legal advisors for information and guidance that is specific to your plan and your financial circumstances before making investment decisions.

© 2016 DST Systems, Inc.