What to do with your old 401(k)

first, take a breath

You probably don't have to decide this week

Losing a job is a lot. The good news: in general, your old 401(k) doesn't have a deadline attached to it. If your vested balance is over $7,000, most plans have to let you leave it right where it is until you're ready. (Smaller balances are the exception, covered in option 1.)

In my experience, the worst money decisions get made in the worst weeks. So use this guide to understand your options now, and make the call when your head is clear.

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where did I put that thing?

How to find an old or lost 401(k)

Most people can find their account in five minutes. If it's been a few jobs, a move, or a company merger since then, it can take some digging. Start at the top of this list and work down.

1. 1
   Search your own recordsOld email, pay stubs, W-2s, paper mail
2. not there? keep going
3. 2
   Ask your old employer"Who runs the 401(k) plan, and how do I reach them?"
4. no answer, or the company's gone?
5. 3
   Look up the plan's Form 5500Free public filing that lists who runs the plan
6. still nothing?
7. 4
   Check the databasesState unclaimed property, the national registry, the DOL's Lost and Found (65+)
8. still stuck?
9. 5
   Ask the Department of LaborFree help from EBSA benefits advisors

Found it at any step? Skip ahead to the six things to gather.

the easy ways

1. Search your own records

• Your email. Search old personal email for "401(k)," "retirement plan," "account statement," or "enrollment." The sender is usually the company that runs the plan (the "recordkeeper"), not your old employer.
• Old pay stubs. A 401(k) deduction line confirms you contributed and sometimes names the plan.
• Old W-2s. Box 12 with code D (or AA for Roth 401(k)) shows you made 401(k) contributions that year. Your tax software or tax preparer may have past W-2s saved.
• Paper mail. Plans mail statements and notices. If you moved, they may have gone to an old address, so it's worth asking whoever lives there now, or checking any mail forwarding you set up.

2. Ask your old employer

Call or email HR or the benefits team and ask: "Who is the recordkeeper for the 401(k) plan, and how do I reach them?" You don't need to explain why you're asking. Once you know the recordkeeper, you can usually create an online login using your Social Security number and date of birth.

the company is gone or not answering

3. Look up the plan's public filing (Form 5500)

Most 401(k) plans file a yearly report with the Department of Labor called Form 5500, and those filings are public. Search your old employer's name on the DOL's EFAST2 filing search (efast.dol.gov). The filing lists the plan administrator's name and contact information, which is often the fastest path when HR has changed or the company was bought.

4. Check the national and state databases

• DOL Retirement Savings Lost and Found. A free Department of Labor database created by the SECURE 2.0 Act. As of this writing it only covers people 65 and older, so it may not help yet if you're younger. Check the DOL site for the current rules.
• State unclaimed property. If a plan couldn't reach you, money sometimes ends up with the state. Search every state you've lived or worked in. MissingMoney.com searches many states at once, or go to your state's official site directly (in California, that's the State Controller's Office).
• National Registry of Unclaimed Retirement Benefits. A private database some plans report to. It's free to search.

5. Ask the Department of Labor for help

If the company went out of business and you still can't find the plan, the DOL's Employee Benefits Security Administration (EBSA) has benefits advisors who help people track down plans for free. You can reach them at askebsa.dol.gov or 1-866-444-3272.

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before you pick anything

Gather these six things first

Once you can log in, write these down. They change how each option plays out.

1. Your vested balance. Money you put in is always yours. Employer matching money may "vest" over time, and the unvested part is usually forfeited when you leave. Your statement shows the vested amount.
2. What kind of money is in there. Pre-tax (traditional), Roth, and after-tax money each have their own rules when you move them. Your statement usually breaks this out by "source."
3. Any outstanding 401(k) loan. Leaving a job can change how a plan loan works, and an unpaid balance may be treated as a withdrawal. Ask the plan what happens to your loan and by when.
4. What it's invested in. The fund names and how much is in each.
5. What it costs. Look for each fund's expense ratio and any plan administration fees. Some plans charge former employees fees that current employees don't pay.
6. Whether you hold your old company's stock. Special rules can apply to employer stock when it leaves the plan. If you have any, talk to a tax professional before moving it.

Sample Company 401(k) PlanSample · fictional

Balance

Total balance$48,000

1Vested balance$45,500

Balance by source

2Pre-tax contributions$30,000

2Roth contributions$12,000

2Employer match (vested $3,500)$6,000

Loans

3Outstanding loan balance$4,000

Investments

4Target-date fund$26,000

4U.S. stock index fund$12,000

4Bond fund$4,000

6Company stock fund$6,000

Fees

5Fund expense ratios0.12% to 0.55%

5Plan administration fee$20 / quarter

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ok, so what are my choices?

Your four options at a glance

None of these is right for everyone. Each one has a real upside and a real catch. Tap any box to jump to the details.

You can also mix them. For example, some people move part of it and leave the rest, or take a partial withdrawal and roll over the remainder. Ask your plan which combinations it allows.

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option 1

Leave it in your old plan

You don't have to do anything. Your money stays invested in the plan, and you can still change your investments inside it. You just can't add new money.

How it works

• Over $7,000 (vested): in general, the plan has to let you leave it there.
• $1,000 to $7,000: the plan may move it out without asking you, usually into an IRA in your name at a company the plan picks. That IRA is often invested in something conservative, like a money market fund, until you change it.
• Under $1,000: the plan may send it to you as a check, with taxes withheld.

These limits come from the SECURE 2.0 Act. Each plan sets its own rules within them, so check your plan's documents or ask the recordkeeper.

What to watch for

• Fees for former employees. Some plans pass administration fees on to people who have left. Compare what you pay now with what you'd pay elsewhere.
• A limited menu. You can only pick from the plan's list of funds.
• Plan changes. If your old employer switches recordkeepers, merges, or shuts the plan down, your account moves with it, and the notices go to whatever address they have on file.
• Strong legal protection. On the plus side, money in most employer plans is covered by a federal law (ERISA) that generally shields it from creditors.

Common mistakes I see

• Forgetting it exists. This is how 31.9 million 401(k)s ended up "forgotten," holding about $2.1 trillion (Capitalize, 2025).
• Never updating your address, email, or beneficiary. If the plan can't reach you, statements stop and your account gets harder to find.
• Assuming a small balance will stay put. It may get moved out for you (see above).
• Leaving it in an investment you picked years ago without checking whether it still fits what you want the money to do.

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option 2

Move it to your new employer's plan

If you've started a new job with a 401(k), you may be able to roll your old account into it, so everything sits in one place.

How it works

• Ask your new plan whether it accepts "roll-ins" (incoming rollovers). Not every plan does, and some make you wait until you're eligible to join.
• The new plan gives you a form and instructions. Your old plan then sends the money directly to the new one (a direct rollover, explained in option 3).
• Roth money should go into the new plan's Roth account, if it has one. Ask about this before you start.

What to watch for

• Compare both menus and both fee lists. Combining is simpler, but only if the new plan's funds and costs work for you.
• Same kind of legal protection. Like your old plan, most employer plans are covered by ERISA.
• Plan loans. Many employer plans allow loans. IRAs don't. If that flexibility matters to you, it's a point in favor of keeping money in an employer plan.
• Paperwork on both ends. You'll deal with two companies, and it can take a few weeks.

Common mistakes I see

• Assuming the new plan takes rollovers before asking.
• Asking the old plan to "send me a check." A check made out to you is an indirect rollover, with 20% withheld and a 60-day clock (see option 3). Ask for a direct rollover instead.
• Mixing up money types. Roth and after-tax money need to land in the right place. Confirm before the money moves.
• Not checking where the money lands. Once it arrives, make sure it's invested the way you intended.

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option 3

Roll it into an IRA

An IRA (individual retirement account) is an account you open yourself at a brokerage, bank, or other firm, separate from any employer. Rolling your 401(k) into it moves the money without cashing it out.

How it works

• Open an IRA at the firm of your choice. Pre-tax 401(k) money generally goes into a traditional IRA, and Roth 401(k) money goes into a Roth IRA.
• Ask your old plan for a rollover. You'll usually need the new IRA's account number and the receiving firm's instructions.
• How the money travels matters a lot. There are two ways:

this part trips people up

Direct vs. indirect rollover

An example of how the indirect math works: say you have $50,000 and take an indirect rollover. The plan sends you $40,000 and withholds $10,000. To roll over the full $50,000, you'd need to deposit $50,000 within 60 days, using $10,000 of your own cash. If you only deposit the $40,000, the missing $10,000 is generally treated as a withdrawal. You may get the withheld amount back when you file your taxes, depending on your situation, but that's months later.

That's why people who use an indirect rollover usually do it on purpose, not by accident. If you don't have a specific reason, ask for a direct rollover.

What to watch for

• More choices, more responsibility. IRAs usually offer a much wider range of investments than a 401(k) menu. That flexibility means you (or whoever you hire) have to choose.
• Fees vary a lot. Compare account fees, the expense ratios of the funds you'd use, and any advisory fee if someone manages it for you. Ask for every fee in writing.
• Different legal protection. In bankruptcy, rollover IRAs are generally protected under federal law. Outside of bankruptcy, protection depends on your state's law and can be weaker than an employer plan's. If this matters to you, ask an attorney.
• The "age 55" rule doesn't follow you. If you left your job in or after the year you turned 55, withdrawals from that employer's plan generally avoid the 10% additional tax. Once the money is in an IRA, that exception no longer applies. (Confirm at IRS.gov or with a tax professional.)
• No loans. IRAs don't allow loans the way many 401(k) plans do.
• Backdoor Roth contributions. If you use (or plan to use) a "backdoor" Roth IRA, a pre-tax IRA balance can change how those contributions are taxed. Ask a tax professional before rolling pre-tax money into an IRA.
• Roth IRA timing rules. A Roth IRA has its own five-year clock for tax-free earnings, separate from your Roth 401(k)'s. If you're moving Roth money, ask a tax professional how it applies to you.
• Who's recommending it. Many people who suggest an IRA rollover (advisors included, me included) can be paid when you do one. That doesn't make it the wrong choice. It means you should ask how they're paid and whether it changes depending on what you pick.

Common mistakes I see

• Accidentally doing an indirect rollover by accepting a check made out to you.
• Missing the 60-day window, or depositing only what arrived and forgetting to make up the 20%.
• Leaving the money uninvested. After a rollover, money often lands in cash and sits there until you choose investments. Log in and check.
• Putting Roth money into a traditional IRA (or the other way around).
• Rolling over employer stock without asking a tax professional about the special rules first.

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option 4

Cash it out

You ask the plan to pay out some or all of the money to you. It's the fastest way to get cash, and it's the only one of the four options that generally triggers taxes right away.

How it works

• The plan generally withholds 20% for federal taxes before sending you the rest.
• The amount you take out from pre-tax money is generally counted as income for the year. If you're under 59½, there's generally a 10% additional tax too, unless an exception applies (like the age 55 rule in option 3). Your state may tax it as well.
• Roth money follows different rules. Your contributions and earnings may be taxed differently depending on your age and how long the account has been open.
• It doesn't have to be all or nothing. Many plans let you take part of it in cash and roll over the rest.

What to watch for

• The 20% withheld isn't necessarily your whole tax bill. Depending on your income for the year, you could owe more (or get some back) when you file.
• The money leaves its tax-advantaged home for good. Generally, you can't put it back later beyond the normal yearly contribution limits.
• Timing. Your income in the year you lose a job may be lower than usual, which can change how a withdrawal is taxed. This is a question for a tax professional, not something to guess at.

Common mistakes I see

• Cashing out the whole thing when a partial withdrawal would have covered what was needed.
• Treating the 20% withholding as the final tax bill and getting surprised in April.
• Cashing out a small balance just to "clean things up." Small balances can usually be rolled over too.
• Deciding in the worst week. If you can, cover the short term another way and give yourself time to compare.

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all four, side by side

Quick comparison

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bring these to whoever you talk to

Questions to ask before you choose

ask your old plan

• What is my vested balance, and how is it split between pre-tax, Roth, and after-tax money?
• Do you charge former employees any fees? Is there a fee to move or withdraw money?
• What happens to my outstanding loan, and by when?
• Can I do a direct rollover, and what do you need from the receiving firm?

ask your new plan

• Do you accept roll-ins? When am I eligible, and can you take Roth or after-tax money?
• What are the fund options and their expense ratios?

ask a tax professional

• How would a withdrawal be taxed for me this year, including state taxes?
• Do any exceptions to the 10% additional tax apply to me?
• Does a pre-tax IRA affect any Roth strategy I use?

ask any advisor (including me)

• How are you compensated?
• Would you be paid differently depending on which option I choose?
• Will you act as a fiduciary for this advice at all times?
• What would my total yearly cost be, all fees included, compared with leaving it where it is?

the most important part

Keep it in perspective

Your old 401(k) is still your money. Find it, look at what's inside, and give yourself time to compare.

• No option is right for everyone. The right fit depends on fees, investment choices, flexibility, legal protection, and taxes, and those are different for every person.
• The biggest risk is usually forgetting. Whatever you choose, keep your contact info and beneficiary up to date.
• Get help on the parts that need it. Tax questions go to a tax professional. Questions about how this fits your bigger picture go to a licensed financial professional.

Rules as of 2026. Tax and account rules change, and every plan has its own details. Confirm anything you act on at IRS.gov, DOL.gov, with your plan, or with a tax professional.

Sources: Challenger, Gray & Christmas, September 2026 Job Cut Report (Oct. 1, 2026). Capitalize, "Forgotten 401(k)s Grow to Record $2.1 Trillion" (2025). IRS, Rollovers of Retirement Plan and IRA Distributions. IRS, Topic No. 413 (Rollovers from retirement plans) and Topic No. 558 (Additional tax on early distributions). IRS, Retirement Topics: Exceptions to Tax on Early Distributions. U.S. Department of Labor, EBSA, Retirement Savings Lost and Found and "Finding a Lost Retirement Plan." SECURE 2.0 Act of 2022, section 304 (automatic cash-out limit raised to $7,000).