401k Rollover Basics | Avoid Mistakes & Improve Results

How to Rollover Your 401(k)

A Simple, Fiduciary Guide to Moving Your Retirement Money the Right Way

Changing jobs or retiring? This step-by-step guide shows you how to rollover your 401(k) without triggering unnecessary taxes, penalties, or hidden fees.

When Should You Consider a 401(k) Rollover?

You typically face rollover decisions when you change jobs, retire, or want more control over your investments. A thoughtful rollover can lower fees, simplify your accounts, and align your money with your retirement goals.

Step-by-Step: How to Rollover Your 401(k)

Gather your plan details. Collect your old 401(k) statements and plan documents.
Decide where the money is going. New employer plan or IRA under your control.
Confirm a direct rollover. Ask for a trustee-to-trustee transfer to avoid withholding and penalties.
Open the receiving account. Set up the IRA or new 401(k) before initiating the transfer.
Complete the paperwork correctly. List the new account as the payee, not you.
Invest with a plan. Once the assets arrive, build a portfolio aligned with your retirement goals.

Common 401(k) Rollover Mistakes to Avoid

Taking the check in your name instead of a direct rollover.
Missing the 60-day window if you do handle the funds.
Ignoring taxes and required withholding.
Cashing out instead of staying invested for retirement.
Rolling into high-fee products that benefit a salesperson, not you.

401(k) Rollover FAQs

Will I owe taxes on my rollover?
Properly structured direct rollovers are generally tax-free. We help you avoid surprises by planning the move before you sign the forms.

Should I rollover to an IRA or a new 401(k)?
It depends on your fees, investment options, creditor protection, and retirement timeline. We compare your options side-by-side.

When is a Roth conversion a good idea?
Sometimes a rollover is the perfect moment to convert part of your balance to Roth. We evaluate the tax trade-offs with you.

Want Help With Your 401(k) Rollover?

BayRock Financial is a fee-only fiduciary firm. We help you make smart rollover decisions so your retirement money actually supports your retirement life.