Old 401(k)? You have four options. Pick the right one.
When you leave a job or retire, your 401(k) does not have to come with you — and sometimes it should not. We help retirees, pre-retirees, and career-changers across Volusia County decide what to do with old employer accounts so the choice serves the whole plan.
Every old 401(k) can go one of four directions
Each has tradeoffs. There is no universal right answer — the best move depends on your age, taxes, plan quality, and how the account fits the rest of your retirement.
Leave it where it is
Over $5,000? Most employers let you stay. Same investments, same institutional pricing — but you can no longer contribute.
Roll to your new plan
Consolidate into your new employer’s 401(k) if it accepts rollovers and has good options and reasonable fees. Many plans do not.
Roll to an IRA
The most common choice near retirement. Broader investments, Roth conversion planning, one strategy — though institutional pricing goes away.
Cash it out
Usually the least favorable. Ordinary income tax on the full amount, plus a 10% penalty under age 59½. Consult your tax professional first.
A rollover is a planning decision, not paperwork
Done right, it sets up the next 20 to 30 years of withdrawals, taxes, and investment management.
Plan review
We examine your actual investment options, expense ratios, share classes, and employer-specific features like company stock and NUA opportunities.
Tax-aware rollover
Direct trustee-to-trustee transfers avoid the 20% withholding and the 60-day trap. We handle the paperwork to keep it clean.
Roth conversion planning
A rollover year can pair with a partial Roth conversion. Steven works with your tax professional to evaluate the options first.
Pre-tax / after-tax split
After-tax contributions can route directly to a Roth IRA, tax-free — an opportunity that is often overlooked.
NUA review
Appreciated company stock may qualify for a one-time tax strategy worth more than a straight rollover. This decision is irreversible.
Income-plan integration
Your rolled-over IRA is coordinated with your other accounts, your Social Security strategy, and your withdrawal sequence.
Bring your old 401(k) in and you walk away with
- A written rollover analysis comparing all four options against your situation
- A tax projection showing the impact of each path
- A Roth conversion view, if a partial conversion makes sense this year
- An NUA review if your plan holds appreciated employer stock
- A rollover paperwork walk-through to get the transfer done correctly
This delivers the most value for households who are
- Retiring in the next 1 to 2 years with one or more old 401(k)s
- Already retired with old employer accounts they have not touched
- Career-changers with multiple 401(k)s across employers
- Surviving spouses who inherited an employer plan
- Holders of significantly appreciated employer stock inside a 401(k)
If that sounds like you, the next step is a 45-minute conversation. Bring your most recent 401(k) statement.
Four simple steps
Call or book
Call (386) 402-4626 or schedule online.
Bring your statement
Your most recent 401(k) statement and the summary plan description if you have it.
Discovery meeting
Free, about 45 minutes. We review your plan, goals, and what each option looks like for you.
Written analysis
You leave with a clear recommendation and the paperwork to act on it. No pressure to roll anything on day one.
401(k) rollover questions
Do I have to roll my 401(k) over when I leave my job?
No. If your balance is over $5,000, most plans let you leave the account where it is. Whether you should depends on the plan and your situation.
What’s the difference between a direct and indirect rollover?
A direct rollover sends the money straight from the old plan to the new account — no taxes withheld, no deadline risk. An indirect rollover sends the check to you, with 20% withheld, and gives you 60 days to redeposit it. Miss the deadline and the whole amount becomes taxable. We generally recommend direct rollovers as the cleaner, lower-risk approach.
What is Net Unrealized Appreciation (NUA)?
If you hold significantly appreciated employer stock inside a 401(k), a special tax strategy may let you transfer the stock to a taxable brokerage account and pay long-term capital gains rates on the appreciation rather than ordinary income rates. The decision is irreversible. Steven works with your tax professional to determine whether it fits before any action is taken.
Should I roll into my new employer’s plan or into an IRA?
The new employer’s plan keeps institutional pricing and creditor protection. An IRA gives broader investment options and Roth conversion flexibility. The right answer depends on the quality of the new plan and your retirement timeline.
Can I do a Roth conversion as part of a rollover?
Yes. A rollover year is often a good year for a partial Roth conversion, especially if your income is lower than usual due to a job transition. We model this before you commit.
Are you a fiduciary?
Investment advisory services are offered by Signal Advisors Wealth, LLC (“Signal Wealth”), a Registered Investment Adviser with the U.S. Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training.
Do you work with people outside New Smyrna Beach?
Yes. We regularly serve households in Edgewater, Port Orange, South Daytona, Daytona Beach, Ormond Beach, DeLand, Deltona, Orange City, Palm Coast, Sanford, Titusville, Holly Hill, Lake Helen, Glencoe, and the rest of Volusia County.
An old 401(k) is worth a look
Make sure it still fits your current goals and timeline. Schedule a free 45-minute review or call our New Smyrna Beach office.
Office: 112 N. Orange Street, New Smyrna Beach, FL 32168 · Mon–Fri, 9:00–5:00
Important disclosures
Signal Advisors Wealth, LLC earns advisory fees based on assets under management. If you follow a recommendation to roll your 401(k) into an IRA managed by Signal Wealth, this creates a conflict of interest, as we benefit financially from that decision. We disclose this conflict and document why any recommended rollover is in your best interest prior to any action being taken.
Investment advisory services are offered by Signal Advisors Wealth, LLC (“Signal Wealth”), a Registered Investment Adviser with the U.S. Securities and Exchange Commission. Registration with the SEC does not imply a certain level of skill or training. Steven L. Rich is an Investment Adviser Representative of Signal Wealth. Insurance products and services are offered through New Smyrna Beach Retirement Solutions (“NSBRS”). Signal Wealth does not offer insurance products. NSBRS is not affiliated with Signal Wealth. When NSBRS and/or its agents are recommending and/or selling insurance products they are not acting on behalf of Signal Wealth or in a fiduciary capacity, and instead are governed by the applicable insurance rules and regulations. NSBRS is not affiliated with or endorsed by the U.S. Government or any governmental agency. NSBRS and its agents do not provide tax, legal, or Social Security advice. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss. Past performance is not indicative of future results. Any tax savings figures, projections, or examples are hypothetical and for illustrative purposes only and are not a guarantee of future outcomes. Individual results will vary. Consult your qualified tax professional or attorney regarding your situation.