What to Do With an Old 401(k): 4 Options When You Leave a Job

When you leave a job, your old 401(k) does not just disappear. You have four choices: cash it out, leave it where it is, roll it into an IRA, or move it to your new employer's 401(k). In this episode, Ryan answers listener Adriana's question by walking through the pros and cons of each option, including the 10% early withdrawal penalty for cashing out and the fee and control tradeoffs of rolling to an IRA versus staying in the old plan.Ryan also covers how your old 401(k) choice can affect more advanced strategies like backdoor Roth contributions and Roth conversions down the road. If you have an old 401(k) sitting somewhere and you are not sure what to do with it, this episode walks through the full decision. This is education, not personal advice; talk to a financial or tax professional about which option fits your situation.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!