What to do with an old 401(k)
An old 401(k) from a past employer still belongs to you. You can leave it, move it, roll it to an IRA or cash it out.
| Option | Upside | Downside |
|---|---|---|
| Leave it in the old plan | ✓ Nothing to move now | ✗ You cannot add new money. Old plan fees may still apply. |
| Move it to a new employer plan | ✓ One account to manage | ✗ Only if the new plan accepts transfers. Fees differ. |
| Roll it to an IRA | ✓ Often a wider range of investments | ✗ IRA fees vary by provider. Plan loans do not carry over. |
| Cash it out | ✓ Money is available now | ✗ Taxed as income. 20% withheld. A 10% extra tax applies before 59½ unless an exception applies. |
Source: https://www.finra.org/investors/learn-to-invest/types-investments/retirement/401k-investing/401k-rollovers and https://www.finra.org/rules-guidance/notices/13-45 and https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions and https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions
Find the account and its provider
Search old statements, emails and the former HR office. Confirm the provider, the balance and the contact details.
Confirm the rules for old balances
Your summary plan description states the rules for former employees. Request a copy from the plan administrator.
Compare fees before you move
Fees can differ between the old plan, a new plan and an IRA. Compare each option's costs in writing.
Update your contact details
Old plans send notices to the address they have on file. Update it so you do not miss an important notice.
Keep one list of old accounts
List every former plan with its provider, balance and status. A complete list makes each decision easier to compare.
Common questions
Where is my old 401(k) account?
Look for the plan administrator named on old statements. The former employer's benefits office can also name the provider.
Is an old 401(k) taxed when I find it?
Finding the account does not trigger tax. An indirect payment or a cash-out can. A direct rollover does not.
Can I move only part of the balance?
Plans may allow partial transfers, depending on the plan and provider. Ask both for their rules before you split any money.
Want the dollar effect first? Run your numbers in the free calculator to see how fees add up in dollars.
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