401(k) Rollover to IRA Guide for Job Change Transitions (2026)
Navigate 401(k) rollover to IRA: direct vs indirect rollover, tax withholding, timing rules, and investment options for retirement account consolidation.
Summary
401(k) rollovers require careful timing and method selection. This guide explains direct vs indirect options, 60-day rule, and tax implications for rollover success.
Key Steps
- 1Choose rollover method: direct transfer (no withholding) vs indirect (60-day deadline).
- 2Avoid indirect rollover risks: 20% withholding, 60-day deadline, tax on missed deadline.
- 3Consider Roth conversion: rollover Traditional 401(k) to Roth IRA (taxable conversion).
- 4Compare investment options: IRA broader selection vs 401(k) limited menu.
- 5Track rollover timeline: complete within 60 days for indirect, immediate for direct.