What Should You Do With Your Old 401(k)? Key Choices for Thriving Families

Changing jobs or planning for retirement?
Deciding what to do with your old 401(k) plan is one of the most important financial moves you’ll make.

Should you leave it where it is? Move it to your next Employer's plan? Roll it over into an IRA you control?

Here’s a quick breakdown to help you choose the best path forward.

Reasons You Might Consider a Rollover to an IRA

TL;DR

📈 Greater Tax Planning Flexibility
— More control over Roth conversions, RMDs, and customized withdrawal strategies.

💼 Expanded Investment Options
— Broader access beyond preset fund menus, including ETFs and custom portfolios.

💵 Potentially Lower Costs (I’m talking to you, Target Date Funds…)
— Fewer hidden fees compared to employer plans, especially target-date funds.

🤝 Personalized Financial Guidance
— Direct support from an advisor who knows your full picture — not a call center.

Why Many Choose to Roll Over Their 401(k) to an IRA

• Enhanced Tax Planning Opportunities
  An IRA often provides greater flexibility for strategies like Roth conversions, proactive RMD management, and customized withdrawal planning.

• Wider Range of Investment Choices
  Unlike the limited fund menus of many employer plans, IRAs open access to a broader universe of investments — including lower-cost ETFs, bonds, and tailored portfolio strategies.

• Potential for Lower Total Costs
  Employer 401(k) plans may layer administrative, recordkeeping, and fund-level fees. Transparent advisory models through an IRA can sometimes reduce these hidden costs.

• Personalized, Relationship-Driven Advice
  Instead of navigating call centers or large service teams, an IRA rollover can connect you directly with an advisor who understands your full financial picture and long-term goals.

Key Factors to Evaluate Before Making a Decision

When considering whether to keep your 401(k) where it is or roll it over, it's important to review:

• Tax Strategy Flexibility:
  Greater ability to tailor tax planning, RMD schedules, and income strategies in an IRA.

• Fees:
  IRA advisory fees compared to administrative and fund costs in employer plans.

• Investment Options:
  Access to broader choices like ETFs, mutual funds, bonds, and personalized strategies.

• Service Model:
  Ongoing advice from a dedicated advisor versus generalized support through call centers.

Why Some People Leave Their 401(k) Where It Is — And Why That Might Not Always Be Best

At first glance, leaving a 401(k) behind with a former employer can seem like the easiest choice. It’s familiar. Your investments are already in place. No immediate paperwork or account changes are required.

But simplicity today doesn't always mean flexibility tomorrow.

Employer plans often limit your investment choices to a predefined menu. Service tends to be routed through large institutional support teams, rather than a personalized advisor. As your financial needs grow more complex — including tax planning, Required Minimum Distributions (RMDs), and income planning — a “set it and forget it” approach may no longer align with your goals.

Before deciding to leave your account where it is, it's worth weighing the trade-offs carefully.

Thinking About a 401(k) Rollover? Let’s Talk.

📞 Want a quick, no-pressure check-in about your retirement plan? Schedule a free 15-minute call here.

Disclosure:
This information is intended for educational purposes only and is not a substitute for specific individualized tax, legal, or investment planning advice. Where personal advice is necessary or appropriate, Grinstead Wealth Management recommends consulting with a qualified tax advisor, CPA, attorney, or financial advisor.

A rollover of retirement plan assets to an IRA is not your only option. You should carefully consider all available choices, which may include: keeping assets in your former employer’s plan, rolling assets to a new employer’s plan, taking a taxable distribution, or rolling to an IRA. Each option has advantages and disadvantages, including but not limited to differences in investment options, fees and expenses, withdrawal rights, creditor protections, required minimum distributions, and tax treatment. Before making a decision, please consider your specific circumstances and consult with the appropriate professionals.