5 Reasons to Rollover Your Old 401(k)

Jun 12, 2023
Est. Read Time: 2 minutes

Old Employer Plan

Did you lose or change your job in the past year? Chances are, your old 401(k) or another retirement plan such as a 403 (b), 457, or TSP is still sitting with your former employer waiting for you to give it direction. You have a few options. Let’s take a look at how you can maximize growth.

Your Options

  • Keep the 401(k) where it is
  • Move it to a new 401(k) with your new employee
  • Convert it to a mutual fund managed by the same company that has been managing the account all along
  • Cash it out
    • Remember that a distribution will incur a 10% early distribution penalty to the IRS if you are under the age of 59.5.  If your 401(k) is a pre-tax account, you’ll also pay taxes.

A Great Option

The letter your 401(k) administrator provides you leaves out one of the best options! Roll your old 401(k) into a Self Directed IRA. Here’s why this choice is the be choice for many people.

  1. Not a taxable event. A transfer to a Self Directed IRA is not a taxable event, no matter your age
  2. The most investment choices allowed. Self Directed IRAs allow almost any investment for your future. Invest in: Real Estate, Hard Money Lending, Agricultural Land, Precious Metals, Cryptocurrency, and many more!
  3. A diversified portfolio. Simply put, you should never put all your eggs in one basket.  A Self Directed IRA allows for this diversification.
  4. Direct control. With your old 401(k), you took what they offered, but didn’t have any say how to invest the funds. With a Self Directed IRA, you have full control over your investment selections. Invest in what you think is the best opportunity for you and your family.
  5. Easy Roth conversions. With a Self Directed IRA, a Roth Conversion can be completed with ease. Imagine leaving your heirs assets that are 100% income tax-free. You can with a Roth Self Directed IRA.


Don’t have a Self Directed IRA? Don’t wait! Take back control of your retirement funds before it is too late. Click here to see our process.

For information about the Self Directed IRA or Solo 401k, call IRA Club at 312-795-0988


IRA Club offers no investments, products, or planning services. Therefore, please consult your attorney, tax professional, financial planner, and any other qualified person before making any investments. Be advised that IRA Club does not evaluate, review, monitor, recommend, warrant, guarantee, or otherwise endorse the legality, tax treatment, propriety, performance, or reliability of any investment, service, statement, opinion, or other representation provided with respect to the investment opportunities listed on its site or their sponsors or providers. IRA Club has no financial arrangement, partnership, joint venture, or other affiliation with the sponsors or providers of these investments. IRA Club shall not be liable for any misinformation, misrepresentation, negligence, act, omission, investment results, or any wrongdoing with respect to any of these investments or their sponsors or providers.

Stay in the know

News, webinars, exclusives and more.

This field is for validation purposes and should be left unchanged.

Related Posts