Retirement Account Rollover Guide | 401k, 403b, 457, TSP

Your 401(k) Matters. A Lot.

For most Americans, their retirement accounts — 401(k), 403(b), 457, TSP, or pension — represent their second-largest asset after their home. Yet when it comes time to make a rollover decision, many people wing it and end up paying unnecessary taxes and penalties.

The good news? With the right guidance, a rollover can actually be an opportunity to simplify your finances and position your wealth for long-term growth.

The 4 Rollover Options: Know Your Choices

When you leave a job or retire, you typically have four options for what to do with your retirement accounts (401(k), 403(b), 457, TSP, etc.):

1. Roll to IRA

Move your balance to a Traditional or Roth IRA. Typically offers more investment options and lower fees.

2. Roll to New Employer Plan

If your new employer offers a 401(k), you can roll your old balance directly into it.

3. Keep in Current Plan

Leave your money where it is (if your balance is over $5,000). Gives you time to decide.

4. Cash Out

Take a lump sum distribution. Usually the worst option—expect significant taxes and penalties.

Direct vs. Indirect Rollover: The Critical Difference

The 60-Day Rule and Tax Withholding

Direct Rollover: Money moves directly from your old plan to your new IRA. No taxes withheld. No 60-day window. This is the safest choice.

Indirect Rollover: You receive a check and have 60 days to deposit it. Your old employer may withhold 20% for taxes. If you miss the 60-day deadline, the full amount becomes taxable income.

Bottom Line: Always request a direct rollover. Indirect rollovers create unnecessary complexity and risk.

The 7 Most Costly Rollover Mistakes

Here are the mistakes we see clients make (and wish they hadn't):

Missing the 60-Day Deadline - Results in full taxation and 10% penalty if under 59½

Choosing Indirect Over Direct - Unnecessary tax withholding and complication

Failing to Coordinate Roth Conversions - Missing tax optimization opportunities

Not Checking for Loans - Outstanding 401(k) loans complicate rollovers

...plus 3 more critical mistakes detailed in the full guide

Download Your Free Rollover Guide

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Every Retirement Account Type Has Unique Rules

Whether you have a 401(k), 403(b), 457, TSP, or pension, each account type has specific rollover rules, tax implications, and potential pitfalls. For example, 457 plans have no early withdrawal penalty, 403(b) annuity contracts may have surrender charges, and TSP holders may lose access to the unique G Fund. Our guide covers account-specific guidance so you can make the right decision for your situation.

How to Roll Over Your Retirement Accounts Without Costly Mistakes