Understanding Your 401(k) Rollover Options: Whether You're Employed, Changing Jobs, or Retired

Your 401(k) Decisions Matter—Here’s How to Choose the Right Path

At Innovative Wealth Management, we know your retirement savings represent years of hard work, planning, and commitment. Whether you’re still employed, transitioning to a new job, or enjoying retirement, understanding your 401(k) rollover options is essential to protecting your financial security and maximizing long-term growth.

✔ If You’re Still Employed

Many employer-sponsored retirement plans allow what’s called an in-service rollover. This means you can move part—or sometimes all—of your 401(k) into an IRA while still contributing to your current workplace plan.

Potential benefits include:

  • More investment flexibility
  • Access to a wider range of funds than typical employer plans offer
  • Independent advising to tailor your financial strategy

✔ If You Left Your Job

This is one of the most common times to consider a rollover. When you leave an employer, you generally have four options:

  • Leave the money in your old plan (may limit your control and investment choices)
  • Roll it into your new employer’s 401(k) (good for consolidation)
  • Roll it into an IRA (maximum flexibility and control)
  • Cash out (often the worst choice due to taxes and penalties)

For most people seeking long-term prosperity, rolling over into an IRA provides more investment management opportunities and greater control over your retirement planning.

✔ If You’re Retired

Once retired, a rollover could help streamline your income distributions and keep your investments aligned with your goals. An IRA typically offers:

  • More diversified investment options
  • Simplified required minimum distributions (RMDs)
  • Flexibility to structure withdrawals around your lifestyle

Why Roll Over Your 401(k)?

Rolling over into an IRA or another qualified plan can support your broader financial strategy—especially when working with a Boca Raton financial planner who takes a personalized approach.

Key benefits of rolling over include:

  • Better investment control through customized wealth management
  • Potentially lower fees than many employer plans
  • Simplified account management when consolidating old plans
  • Personalized retirement planning and guidance tailored to your goals
  • Improved long-term care planning by coordinating retirement assets in one place
  • Estate planning alignment to help protect your legacy

How We Help You Make the Right Choice

Your rollover decision should support your long-term financial security. At Innovative Wealth Management, our independent financial advisors take the time to understand your full financial picture—investments, retirement planning, estate planning, and long-term care needs—to help you determine the best path forward.

Whether you're still working, transitioning to a new opportunity, or entering retirement, we’re here to guide you through each phase with clarity and confidence.

Ready to explore your 401(k) rollover options?
Contact us today for a friendly, personalized review of your retirement strategy.