我有个老的 401k plan, 要换 plan administrator (custodian), 我离开这家公司有13.5 年了，至少已经换过一次administrator – 昨天 (11/27/2025) 我干脆把它 roll over to IRA 了。*Update 12-01-2025, the money is already in my IRA account. I think partially because it’s inside the same administrator, the speed of moving is quite fast (one or two business days). I initiated on the Thanksgiving day, and the money arrived on Cyber Monday.
An old 401k account notified me recently they are going to change the plan administrator (again), and this is at least the second time they are making a change, and this time around I decided to roll over to my regular IRA instead of following/sticking with them.
Below is the Google search results comparing rollover to IRA or to new employer’s 401k plan. I copied the AI Overview below.
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Rolling over an old 401(k) to an IRA generally provides more investment choices and potentially lower fees, while rolling it into a new employer’s 401(k) is often simpler and consolidates accounts. The best option depends on your priorities, such as investment control versus administrative convenience, so compare the investment options and fees of both your new 401(k) plan and potential IRAs before deciding.
Roll over to an IRA
- Pros:
- Greater investment options: IRAs offer a much wider variety of investments, including stocks, bonds, ETFs, and REITs.
- Potentially lower fees: You can often find an IRA with lower fees by choosing a low-cost brokerage.
- Flexibility: You can manage your retirement savings separately from your current job.
- Cons:
- Potential for more complex management: Managing separate accounts can be more complicated.
- Fewer creditor protections: IRA protections against creditors can vary by state and may be less robust than those for 401(k)s.
- No loan options: You cannot take out a loan from an IRA, unlike a 401(k).
Roll over to a new employer’s 401(k)
- Pros:
- Simplicity: Consolidating your retirement funds into one account is often the easiest administrative option.
- Cons:
- Limited investment options: Your new employer’s plan may have a limited selection of investments.
- Potentially higher fees: The new plan’s fees may be higher than those of an IRA.
- Less control: Your new employer has control over the plan, including its features and fees.
Other options
- Leave the money in the old plan: You can keep the money in your former employer’s 401(k) as long as the balance is over a certain threshold (typically $5,000). This is a good option if you are happy with the old plan’s performance and fees. (My comments: this is not an option sometimes. Larger employers usually allow this, but smaller employers usually don’t)
- Cash out: While technically an option, cashing out your 401(k) is generally not recommended as it will result in immediate taxes and potential penalties, and you will lose tax-advantaged growth.
How to decide
- Compare your new 401(k) plan with potential IRAs. Look at the investment options, fees, and performance history of each.
- Consider your retirement goals. If you want a wide range of investment options and control, an IRA may be better. If you prefer simplicity and easy administration, a new 401(k) might be suitable.
- Consult a financial advisor. For personalized advice based on your specific financial situation, consult a financial advisor.
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Again, IRA offers more investment choices (stocks, could be a double edge sword 🗡️), and consolidation of the accounts.
Talking about double edge sword。大概也是2011年到2014年之间，我把两个我做contractor (合同工）时候的小401k都roll over 到我的IRA里去了。当时里面总共大概有三万块钱：结果我炒股，把它变成了一万五还是一万二 :-(。大概到2019年我才回本：考虑通胀和机会成本，实际上还是亏的。所以说这是双刃剑 🙂
IRA 跟 401k 还有两个细微的区别：401k 是可以跟它借钱的，比如买房的时候；另外还有一个55岁时没有early withdrawal penalty 取钱的一种选择 (rule of 55)。IRA 没有这些选择。
Also, refer to my earlier posts on this topic, if you are interested. I changed quite a few employers in last 15 years or so, thus I have this problem.
Last but not least, Thoughts on retirement and retirement accounts