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Rollover IRA What to do with an old 401(k)

Have an old 401(k) from a former employer? Let's help you weigh the 4 options to make the right decision for your specific needs.

Open a Rollover IRA

Roll over to Fidelity and consolidate your retirement accounts in one place while continuing tax-deferred growth potential¹ through a wide range of investment options.

Roll over to Fidelity

If allowed, consolidate your 401(k)s into one account with your new employer, continuing tax-deferred growth potential. Investment options vary by plan.²

If your former employer allows, keep your money where it is. You'll continue your tax-deferred growth potential... but can't contribute anymore. Investment options vary by plan.

4. Cash out (and pay taxes)

Any cash you withdraw will be subject to state and federal taxes and, before age 59½, a 10% withdrawal penalty may apply.³ Also, your money won't have the potential to continue to grow tax-deferred.

Compare your options

Image of U.S. dollar bill representing a $50,000 early withdrawal from a 401(k), sliced into four unequal sections. First section labeled Federal taxes = $12,000. Second section labeled State taxes = $3,500. Third section labeled Early withdrawal penalty = $5,000. Fourth section labeled Cash left = $29,500.

This example assumes the following: A hypothetical 24% federal marginal income tax rate, a hypothetical 7% state income tax, and a standard 10% penalty for early withdrawal. The penalty is not withheld from the distribution, but rather paid when the employee files their income taxes. This example is for illustrative purposes only. Please note that the 10% early withdrawal penalty does not apply to distributions made to an employee after separation from service after age 55. The withdrawal will still be subject to income taxes.

Rollover overview

Get more info about our Rollover IRA options as well as step-by-step instructions. Learn more

If you're self-employed

You may be able to roll over to your own small business retirement plan, such as a SEP IRA. Learn more

Investing your IRA

Get help selecting from Fidelity's wide range of investment options. Learn more

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Rollover IRA What to do with an old 401(k)

4 options for your old 401(k)

1. Roll over to Fidelity IRA

2. Roll over to a new workplace plan