401(k) rollover clarity ยท Los Gatos
Do not move retirement money until the choices make sense.
An old 401(k) can have several possible paths. Answer a few questions and your clarity review starts with your situation, not a product.
The decision
Four common paths. Different tradeoffs.
Leave it where it is
The former employer plan may offer competitive institutional pricing, familiar investments, and plan-specific protections. Service and withdrawal flexibility may be limited.
Move it to a new plan
A new employer plan may consolidate accounts if it accepts rollovers. Compare its fees, investments, services, and distribution rules first.
Roll it to an IRA
An IRA may expand investment and service choices. Costs, advice arrangements, creditor protections, and available features can differ from an employer plan.
Take a distribution
Cash access can trigger withholding, income taxes, and possibly an additional tax depending on age and circumstances. This path deserves tax guidance before action.
The review
What we compare with you.
- 01
Your actual plan
Fees, investments, services, withdrawal rules, loan treatment, and any plan-specific benefits.
- 02
Your next chapter
Retirement timing, income needs, access to cash, other accounts, and who will help manage the plan.
- 03
The available paths
What changes, what stays protected, what it costs, and what questions belong with your tax or legal professional.
On Point Finances is an insurance agency, not a tax, legal, or investment adviser. A clarity review is educational and does not obligate you to move an account or purchase an insurance product.
Common questions
Start with the basics.
What can I do with an old 401(k)?
Depending on the plan and your circumstances, common choices can include leaving the money in the former employer plan, moving it to a new employer plan if accepted, rolling it to an IRA, or taking a distribution. Each choice can affect access, costs, investment options, services, taxes, and creditor protections.
Do I have to move it when I leave a job?
Not always. Many plans allow former employees to leave money in the plan, although plan rules and small-balance provisions vary. Review the plan documents before deciding.
Is a rollover taxable?
A properly handled direct rollover is generally intended to preserve tax deferral, while a distribution paid to you can create withholding and tax consequences. Individual circumstances vary, so confirm the process with the plan administrator and a qualified tax professional.
Your next step
Bring the statement. Leave with better questions.
We will help you organize the decision and tell you plainly when an insurance solution does not belong in it.
The questions at the top of this page take about a minute, and they are how you book. Your answers set the agenda for the review.