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Left a job? Don't leave your 401(k) behind.

You have four choices for an old 401(k). One of them can quietly cost you a third of your balance. Here's how each option works, and the services that will move your money for you.

Compare your options

What cashing out really costs

A rough estimate. Your actual taxes depend on your full return.

Federal income tax
State income tax
10% early withdrawal penalty
You'd keep about

Assumes the whole balance is taxed at your bracket. Exceptions to the 10% penalty exist, such as leaving your job in or after the year you turn 55.

Your four options

There's no single right answer, but there is usually a wrong one.

Most flexible

Roll it into an IRA

Move the money into an IRA you control. You choose the investments and keep your accounts in one place. Ask for a direct rollover so nothing is withheld for taxes.

Simplest if allowed

Roll it into your new employer's plan

Combine it with your new 401(k), if the plan accepts rollovers. Good if the new plan has low fees and solid fund choices.

Fine, but easy to forget

Leave it where it is

Most plans let you leave balances above a minimum. The risk is losing track of it, paying fees you don't notice, or being stuck with limited fund options.

Usually the costliest

Cash it out

The money is taxed as income, and if you're under 59½ you'll usually owe an extra 10% penalty. Your plan will also typically withhold 20% up front.

Direct vs. indirect rollover

In a direct rollover, the money goes straight from your old plan to the new account. If the check is made out to you instead, 20% is withheld and you have 60 days to deposit the full amount, including the withheld 20% from your own pocket, or the shortfall is taxed.

2026 contribution limits

Set by the IRS for the 2026 tax year.

Limit2026
401(k) employee contributions$24,500
401(k) catch-up, age 50 and over$8,000
401(k) catch-up, ages 60 to 63$11,250
IRA contributions$7,500
IRA catch-up, age 50 and over$1,100

Get help moving your money

These services can find old accounts, open an IRA, or handle the rollover paperwork for you.

Capitalize

Rollover service

Finds your old 401(k) and handles the rollover into an IRA at no cost to you.

See how Capitalize works

Beagle

Find lost 401(k)s

Searches for 401(k) accounts from past jobs and helps you consolidate them.

Search with Beagle

Betterment

Automated investing IRA

A robo-advisor IRA that invests and rebalances for you. It has run promotions for rollovers, so check current terms.

Open a Betterment IRA

Robinhood

Self-directed IRA

A brokerage IRA you manage yourself. It has offered a match on rollovers, so check the current offer and its conditions.

See Robinhood's IRA

Directed IRA

Self-directed IRA for alternatives

For investors who want retirement money in real estate, private companies or other alternative assets.

Learn about Directed IRA