401k Calculator & Guide
Learn how to move money from an old 401(k) into an IRA or a new employer plan, how direct rollovers work, what the 60-day rule means, and how taxes and withholding can affect a rollover.
A 401(k) rollover moves eligible retirement-plan money from one retirement account into another eligible retirement plan or IRA. Rollovers can help keep retirement assets inside a tax-advantaged account.
Move eligible funds from an employer plan into a traditional IRA, Roth IRA, or both when the applicable rollover and tax rules permit.
A new employer's plan may accept rollover contributions from your previous employer's retirement plan.
Depending on the plan and your balance, you may be able to leave your money in the former employer's plan.
A rollover transfers eligible retirement assets into another eligible retirement account. Cashing out means taking the money as a distribution instead, which can create taxes and potentially an additional tax depending on the circumstances.
When you leave an employer, your retirement-plan options can include several different paths. The exact choices depend on your plan, balance and circumstances.
Move eligible funds into an individual retirement account.
Move eligible money into a new employer's retirement plan.
Some plans allow former employees to keep their retirement account in the plan.
Receive some or all of the account as cash instead of rolling it over.
A direct rollover usually keeps the transaction simpler because the money goes directly from the old plan to the receiving retirement account.
Check your balance, vested amount, investment options, fees and distribution rules.
Consider an IRA, new employer plan or keeping the old account.
Make sure the receiving plan or IRA accepts the type of rollover you want to make.
Ask the old plan administrator for direct rollover instructions.
Confirm the receiving account received the funds and retain your rollover records.
These two methods move retirement money differently. Understanding withholding and timing is especially important if the distribution is paid to you.
| Feature | Direct Rollover | 60-Day Rollover |
|---|---|---|
| Who receives the funds? | Receiving retirement account | You receive the distribution first |
| Deadline | Transferred directly | Generally within 60 days of receiving the distribution |
| 20% federal withholding | Generally does not apply to the direct transfer | Generally applies to taxable eligible plan distributions paid to you |
| Extra funds needed? | Generally no withholding amount to replace | You may need other funds to roll over the full distribution |
| Administrative complexity | Generally simpler | Requires careful timing and documentation |
When a retirement-plan distribution is paid directly to another eligible retirement plan or IRA, federal income-tax withholding generally does not apply to the amount transferred. If the plan instead pays the distribution to you, mandatory 20% federal withholding generally applies to an eligible taxable distribution.
A properly completed rollover of eligible amounts generally allows the money to remain within a tax-advantaged retirement account. Tax treatment depends on the source account, destination and type of money being moved.
A qualifying rollover generally does not create current federal income tax on the amount rolled over.
A qualifying plan-to-plan rollover can generally preserve the tax-deferred treatment of the eligible amount.
This is generally a Roth conversion rather than a tax-free traditional rollover. The taxable amount generally becomes income in the year of the conversion.
Designated Roth 401(k) distributions can generally be rolled only into another designated Roth account or a Roth IRA. For the Roth-specific process, see our Roth 401(k) rollover guide .
If an eligible retirement-plan distribution is paid to you instead of transferred directly, you generally have 60 days from receipt to complete the rollover.
The 60-day period generally begins when you receive the distribution.
Eligible taxable distributions from employer plans paid to you generally have 20% federal income-tax withholding.
To roll over the full distribution, you generally need to replace the amount withheld using other funds.
Suppose an eligible taxable $50,000 plan distribution is paid to you. If $10,000 is withheld, you receive $40,000. To roll over the full $50,000, you generally need to deposit the entire $50,000 into the eligible receiving account within the applicable 60-day period. The withheld $10,000 is generally treated as taxes paid.
IRS rules exclude certain distributions from rollover treatment. The exact classification of a payment matters.
Required minimum distributions generally cannot be rolled over.
Certain hardship distributions from an employer plan generally cannot be rolled over.
Corrective distributions of excess contributions or deferrals are generally excluded from rollover treatment.
Some substantially equal periodic payments and payments over specified long periods cannot be rolled over.
A plan loan treated as a distribution can have special rollover rules, including rules for qualified plan loan offsets.
Certain dividends or distributions involving employer securities have special rules and may not be rollover eligible.
Review these items before requesting a transfer from an old employer plan.
Receiving the distribution yourself can trigger mandatory withholding and the 60-day rollover requirement.
If an eligible taxable plan distribution is paid to you, the withheld amount may need to be replaced to roll over the full distribution.
A receiving employer plan generally is not required to accept rollover contributions.
Traditional, Roth and after-tax retirement funds can have different rollover and tax rules.
Compare the fees, services and investment options of the old plan and potential destination before moving assets.
Employer securities, outstanding loans and certain distributions can require additional analysis.
Use the rollover calculator to explore an illustrative rollover amount, potential withholding and the difference between moving the full balance and receiving part of the distribution.
Explore your estimated rollover scenario before reviewing the detailed tax and account rules.
Open 401(k) Rollover Calculator →Learn how a workplace retirement account can be moved into an IRA.
Understand the tax treatment of moving traditional 401(k) money into a Roth IRA.
Review rollover options after starting with a new employer.
Explore what you can do with an account from a previous employer.
Learn how direct transfers work and why they can simplify the rollover process.
Understand the 60-day process, withholding and rollover timing.
Learn when rollover transactions can create taxable income.
See how designated Roth 401(k) rollovers differ from traditional 401(k) rollovers.
Compare rollover scenarios and continue through the 401(k) rollover cluster to understand the rules that may apply to your situation.
Clear guides, useful calculators and practical retirement resources to help you understand your 401(k), contributions, employer matching, Roth options, rollovers and long-term savings.
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