401(k) Rollover Guide: Your Options When Changing Jobs

Changing jobs is exciting. But what happens to your 401(k)? If you leave it behind, you could miss opportunities to grow your retirement savings or reduce fees. That’s why understanding your 401(k) rollover options is essential when you start a new chapter in your career.

What Is a 401(k) Rollover and How Does it Work?

A 401(k) rollover means moving money from your previous employer’s retirement plan into another qualified account, such as an IRA or a new 401(k), without paying taxes or penalties. This keeps your savings tax-deferred and ensures your money continues working for your future.

Rolling over is common when you change jobs, retire, or want more investment choices.

A rollover can happen two ways:

• Direct Rollover: Your previous plan sends the money directly to your new plan or IRA. No taxes will be withheld, and you’ll experience no penalties.
• Indirect Rollover: The money comes to you first, and you have 60 days to redeposit it. If you miss the deadline, it’s considered a taxable withdrawal.

Tip: We always recommend choosing a direct rollover to avoid headaches. Read more 401(k) tips.

4 Options for Your Old 401(k) When You Switch Jobs

When you leave an employer, you generally have the following choices:

1. Leave It with Your Former Employer

• Pros: Your money stays invested and is tax-deferred.
• Cons: It’s harder to manage, and you may have limited investment options with higher fees.

2. Roll It into Your New Employer’s 401(k)

• Pros: This keeps your retirement savings in one account for easier tracking.
• Cons: Your new plan might have limited investment choices.

3. Roll It Over into an IRA

• Pros: You’ll have maximum flexibility, which means more investment options, control over your strategy, and lower fees.
• Cons: You may lose 401(k) protections and features. Rolling into an IRA can mean giving up certain protections, loan options, and penalty-free withdrawals at 55.

4. Cash It Out (Not Recommended)

Why avoid this? Cashing out means income taxes and possible early withdrawal penalties. You also lose future growth potential.

Other Common 401(k) Rollover Mistakes to Avoid

• Missing the 60-day deadline on indirect rollovers.
• Forgetting to review your investment mix after the transfer.

Learn about more common mistakes to avoid during retirement planning.

How WesBanco Supports Your Retirement Goals

At WesBanco, we provide personalized retirement guidance. Whether you need an IRA rollover, brokerage services, or help building a complete retirement plan, we’re here to help.

With over 155 years of trusted experience and tools like the WesBanco Mobile App, we make planning for your future convenient and stress-free.

Start your 401(k) rollover today. Talk to a WesBanco Retirement Specialist.

WesBanco Bank, Inc. is a Member FDIC. WesBanco Trust and Investment Services, a division of WesBanco Bank, Inc., may invest in insured deposits or Non deposit investment products. Non deposit investment products are not insured by the FDIC or any other government agency, are not deposits or other obligations of, or guaranteed by any bank or any affiliate, and are subject to investment risks including the possible loss of the principal amount investment.

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