Your 401(k) Should Move Forward When You Do
When you leave a job or transition into retirement, your 401(k) doesn’t have to stay behind. At Geller Private Wealth, we help you understand your options and make decisions that reflect your financial goals—not just your former employer’s plan.
There are typically four directions to consider. Each comes with its own benefits and trade-offs. Let’s walk through them together.
1. Leave It Where It Is
You may be able to keep your 401(k) with your previous employer. This might make sense if the investment options are strong and fees are low—but we’ll help you evaluate whether this truly aligns with your retirement strategy.
2. Roll It into an IRA
Rolling your 401(k) into an IRA opens the door to broader investment choices and more control. This option can allow for a more tailored portfolio that reflects your full financial picture, including tax strategy, risk tolerance, and estate planning considerations.
3. Move It to Your New Employer’s Plan
If you’re starting a new job and they offer a solid retirement plan, consolidating your savings there might be beneficial. We’ll help you compare costs, investment menus, and plan features to make an informed choice.
4. Cash It Out
While technically an option, cashing out often comes with tax consequences and potential penalties. It may provide short-term liquidity, but could reduce your long-term retirement readiness. We’ll walk you through the pros and cons so you can decide wisely.
Each of these options has advantages and disadvantages and the one that is best depends on your individual circumstances. When considering rolling over your assets from a QRP to an IRA, factors that should be considered and compared between QRPs and IRAs include fees and expenses, services offered, investment options, when you no longer owe the 10% additional tax for early or pre-59 ½ distributions, treatment of employer stock, when required minimum distributions begin and protection of assets from creditors and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with QRPs. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets.
Our Role in the Process
At Geller Private Wealth, we believe financial decisions should reflect your life—not just your ledger. We provide:
- Personalized 401(k) reviews
- Tax-aware rollover strategies
- Multi-generational planning considerations
- A consultative, educational experience every step of the way
Whether you’re five years from retirement or facing a career shift today, we’ll help you understand how each decision can influence your future—and how to take the next step with confidence.
