IRA & 401(k) rollover guidance
Before You Roll Over a 401(k), Compare Your Options.
Leaving an employer or consolidating retirement accounts can create an important decision: leave the assets in the existing plan, roll them into an IRA, move them to another employer plan when available, or take a distribution.
We help you compare the choices based on investment options, costs, services, creditor protections, taxes, access to your money, and how each fits into your broader retirement and investment strategy.
A rollover is not automatically the right answer. We begin with the decision that makes sense for you, including whether leaving the account where it is may be the better choice.
Based in Naples, providing IRA and 401(k) rollover guidance to investors and retirees throughout Southwest Florida, with clients also served in New York and New Jersey. See our locations.
Your Four 401(k) Rollover Options
When you leave an employer, you can generally choose one or a combination of four paths, depending on your plan’s rules and your circumstances:
| Option | May suit you if… | Things to weigh |
|---|---|---|
| Leave it in the former employer’s plan | The plan allows it, offers investments and costs you are comfortable with, and you value its plan-specific features or protections. | Investment choices remain limited to the plan. Multiple old plans can also be harder to coordinate as part of one retirement strategy. |
| Move it to a new employer’s plan | Your new plan accepts incoming rollovers and offers investments, costs, and features that fit your needs. | Not every plan accepts rollovers. Investment choices, services, protections, and withdrawal rules can differ from your former plan. |
| Roll it over to an IRA | You want broader investment flexibility, consolidated accounts, or ongoing professional management. | Compare advisory fees, investment expenses, services, legal protections, and withdrawal rules with the employer plan before deciding. |
| Take a distribution | You need access to some or all of the money and understand the potential consequences. | The taxable portion may be subject to current income tax and, depending on your circumstances, additional taxes or penalties. Taking money out also reduces the assets available for retirement. |
What to Weigh Before Deciding
- Costs. Compare plan administration fees and investment expenses with IRA investment costs and any advisory fee.
- Investment choices. Employer plans may offer lower-cost institutional investments, while an IRA may provide a broader range of investment choices.
- Service and advice. Consider whether you want ongoing advice, portfolio management, and coordination with the rest of your financial plan, and what you are paying for those services.
- Protections. Creditor protections and other legal protections can differ between employer-sponsored plans and IRAs. Ask your attorney how the rules apply to your situation.
- Withdrawal rules and plan features. Employer plans and IRAs can differ in when money may be accessed, which penalty exceptions may apply, and what other plan-specific features are available.
- Taxes. A properly structured direct rollover can generally preserve tax deferral. If an eligible employer-plan distribution is paid to you instead, mandatory withholding and rollover deadlines can apply. Pre-tax, Roth, and employer-stock balances may require separate analysis.
- Employer stock. Company stock held inside a retirement plan can have special tax considerations that may be lost after a rollover, so it should be reviewed before assets are moved.
Confirm tax details with your CPA or tax professional before acting; rollover rules depend on your specific circumstances.
Our Conflict of Interest, Stated Plainly
If you roll assets into an IRA that Juth manages, those assets become subject to Juth’s 2.00% annual advisory fee. If you leave the assets in an employer plan, Juth does not earn an advisory fee on those assets. That creates a financial conflict of interest.
We address that conflict by comparing all four paths with you, explaining the costs and trade-offs of each, and documenting the reasons behind any recommendation. A rollover is not automatically the right answer. Leaving the money where it is may be the better choice.
How We Help
- Review your employer plan’s investment menu, fees, services, and distribution rules using the plan documents you bring to the meeting
- Compare those features with an IRA, including the scope of Juth’s investment management and our 2.00% annual advisory fee if we would manage the assets
- Evaluate how the account fits with your broader retirement income, investment, liquidity, and tax strategy
- Coordinate tax questions involving pre-tax and Roth balances, employer stock, or other tax-sensitive issues with your CPA
- If a rollover is appropriate and you choose Juth, help arrange a direct rollover into an IRA held in your name at Interactive Brokers
For privacy, you do not need to upload employer-plan documents through our website form. You can bring them to the meeting instead.
Related: Accounts we manage · Retirement planning with a CPA perspective · Investment management fees
Independent Sources
For neutral background on retirement-plan rollovers, you may also want to review:
Rollover Questions
Should I roll over my old 401(k)?
Not automatically. A rollover may make sense if you want broader investment choices, account consolidation, or ongoing professional management. Leaving the money in the employer plan may be better if the plan’s costs, investments, protections, or other features are more advantageous for your situation. We compare the options before recommending a path.
Can you manage my 401(k) where it is?
No. We manage individual brokerage accounts, traditional IRAs, and Roth IRAs held at Interactive Brokers. We can review an employer plan such as a 401(k) and help determine how it fits into your broader retirement and investment strategy, but we do not manage the employer plan directly.
Will I owe taxes if I roll over my 401(k)?
A direct rollover from a pre-tax 401(k) to a traditional IRA generally preserves tax deferral and does not create current federal income tax. Moving pre-tax assets to a Roth IRA generally creates taxable income. If an eligible distribution is paid to you first, mandatory withholding and rollover deadlines can apply. Confirm the tax treatment of your specific rollover with your tax professional.
What if my 401(k) holds employer stock?
Employer stock can require special tax analysis before a rollover. In some circumstances, net unrealized appreciation may receive different tax treatment if employer securities are distributed rather than rolled into an IRA. We flag this issue and coordinate with your CPA or tax professional before assets are moved.
What does a rollover review cost?
The introductory conversation is free. Detailed rollover analysis is included in initial planning for prospective investment management clients. Standalone financial planning is also available as a one-time $2,000 fixed-fee engagement.
