Compare Four Options for Your Old 401(k)

Got an old 401(k) from a former employer? We can help you make the right decision for your specific needs.

Three ways to help maximize your savings

When you retire or change jobs, you have three options for your old 401(k) that can provide continued potential tax-deferred growth opportunities.1 Or, you can cash out; but keep in mind that taxes will apply, plus possible withdrawal penalties.

  1. Roll over to a Fidelity IRA – Lets you consolidate your retirement accounts in one place, while continuing tax-deferred growth potential. With a Fidelity IRA, you have access to a wide range of investment options.

    Open a Fidelity Rollover IRA

  2. Roll over to a new workplace plan (if permitted) – Lets you consolidate your 401(k)s into one account, while continuing tax-deferred growth potential. Investment options vary by plan.

  3. Stay in old workplace plan (if permitted) – Lets you continue tax-deferred growth potential; however, you can no longer contribute to the old plan. Investment options vary by plan.

Compare your options
Get a side-by-side comparison with more details highlighting the pros and cons of each potential tax-advantaged growth option to help you decide which is right for you.

View comparison

Cashing out of a 401(k)

Depending on your plan and your situation, you may choose to take the money out of your 401(k) plan. If you cash out, you will gain immediate access to your money, which may suit your needs if you face an unexpected hardship.

However, your cash distribution will be subject to state and federal taxes and, before age 59½, a 10% withdrawal penalty may apply.5 By rolling over your old 401(k) to an IRA, the early withdrawal penalty will not apply.

Additionally, if you cash out of your 401(k), your money will no longer have the potential to continue to grow tax-deferred.

In other words, you would have almost none of the advantages of the other three options highlighted here.

Need help understanding your options?

Fidelity has dedicated rollover specialists available to help with anything from a quick question about your options to guiding you through each step of the rollover process.

Call 800-343-3548 to speak with a Fidelity rollover specialist now.

Learn more

What to do with an old 401(k)
Read this Fidelity Viewpoints® article on weighing the pros and cons of your options.

Rollover checklist
Follow these three easy steps to move your money from an old workplace savings plan to Fidelity.

Choosing investments for your IRA 
Get help selecting from Fidelity’s wide range of investments.