Should I Roll Over My 401k?

Cashing out is almost always the least favorable choice due to immediate income taxes and a 10% early withdrawal penalty if you are under 59.5. Rolling over to an IRA is often the most flexible option, offering a broader investment selection and no required minimum distributions during your lifetime for Roth accounts. However, staying in an employer plan may be advantageous if the plan offers low-cost institutional funds, strong creditor protection, or if you plan to continue working past age 73 and want to defer RMDs on that balance. Rolling into a new employer’s plan simplifies account management and preserves 401(k) creditor protections. The right answer depends on your specific plan options, investment costs, timeline, and overall retirement strategy.

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