Your four basic options
When you leave an employer, the 401(k) you built there doesn't have to stay put, and it doesn't all have to move the same way. Broadly, you have four paths, each with trade-offs.
You can leave it in the old plan (sometimes fine, sometimes not, depending on fees and options). You can roll it into your new employer's plan if they accept it. You can roll it into an IRA, which usually opens up more choices. Or, depending on your goals, a portion could go toward a protected, tax-advantaged strategy designed to reduce exposure to market swings. None of these is automatically right; the best path depends on your age, timeline, and how much market risk you want to carry.
Moving retirement money has tax rules attached. A direct rollover handled correctly generally avoids triggering taxes; a misstep can create a taxable event. This is exactly where a careful conversation pays off.
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Book a free strategy session →Market risk vs. protected strategies
The closer you get to retirement, the more a big market drop at the wrong time can hurt, because you have less time to recover and you may be drawing the money down. This is sometimes called sequence-of-returns risk.
That doesn't mean market exposure is bad; growth matters too. It means the mix should match your stage. Here's the honest framing of the trade-off:
- Staying fully market-exposed keeps growth potential but also keeps downside risk
- Protected strategies (like certain annuities) can reduce downside but typically cap or trade off some upside
- Taxes, fees, surrender terms, and guarantees all vary and need to be compared honestly
- The right answer is usually a blend matched to how close you are to needing the money
What to ask before you move anything
Before you roll over a dollar, get clear answers to a few questions: What are the fees in the old plan versus the new option? What are the tax implications of this specific move? What guarantees, if any, am I getting, and what am I giving up for them? What are the surrender or withdrawal terms? And does this fit my actual retirement timeline?
If anyone rushes you or can't answer those plainly, slow down. A rollover is reversible only within narrow windows, and some moves can't be undone. My job is to lay out the real options, including leaving things where they are if that's genuinely best for you.
My commitments to you
No pressure, ever. If something isn't a fit for you, I'll say so plainly. You decide on your timeline, not mine.
Plain English. No jargon and no sales theater. You'll understand what you're looking at before you decide anything.
Your pace. Read the guide, sit on it, ask questions. I'm here when you're ready and not before.
Common questions
Should I roll my 401(k) into an IRA?
Will I owe taxes if I move it?
What's the rush?
Do I have to move all of it?
Want a second set of eyes on your old 401(k)?
No cost, no pressure. Pick whatever's easiest.
— Rafferty Yao, CA Insurance Lic# 0N15573 · Freedom Equity Group