Interactive Retirement Planning Tool

401(k) Rollover Calculator

Compare a direct rollover with an indirect 60-day rollover, estimate potential withholding and see how much additional cash may be needed to roll over the full distribution.

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Illustrative rollover amount $100,000

Calculate Your 401(k) Rollover

Enter your account balance and select how you plan to move the money. The calculator separates direct-rollover treatment from payment-to-you withholding and potential taxable amounts.

401(k) Rollover Calculator

Educational estimate based on simplified rollover assumptions. Actual eligibility and tax treatment depend on the distribution, plan and account type.

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Amount entering the new retirement account $100,000 Direct rollover: no federal withholding is modeled.
Gross distribution $100,000
Estimated federal withholding $0
Additional cash needed $0
Potentially taxable now $0
Illustrative tax on taxable amount $0
Potential 10% additional tax $0
A direct rollover generally avoids mandatory 20% federal withholding on an eligible rollover distribution.

Direct vs. 60-Day Rollover

The two methods move retirement money differently. The most important distinction for this calculator is whether the distribution is paid directly to the receiving retirement account or first paid to you.

Direct Rollover

The old plan sends the eligible distribution directly to the receiving IRA or employer plan.

  • Federal withholding: generally none on the amount directly rolled over.
  • 60-day deadline: the payment is handled directly between custodians.
  • Tax timing: generally no current tax on the eligible traditional amount rolled over.
  • Administration: contact both plan/custodian providers for instructions.

60-Day Rollover

The distribution is paid to you and then deposited into an eligible retirement account within the applicable 60-day period.

  • Federal withholding: generally 20% for an eligible rollover distribution paid to you.
  • 60-day deadline: generally applies from the date you receive the distribution.
  • Full rollover: you generally need other funds to replace the withheld amount.
  • Tax risk: any taxable amount not rolled over can generally become taxable.

How a 401(k) Rollover Works

A rollover moves eligible retirement assets from one retirement account to another without treating the properly rolled-over amount as a current taxable distribution.

1

Review the old plan

Check your current 401(k) balance, distribution options, investment choices and plan procedures.

2

Choose the destination

Possible destinations can include a traditional IRA or another eligible employer retirement plan.

3

Choose the transfer method

A direct rollover sends eligible funds directly to the receiving retirement account.

4

Confirm completion

Keep the rollover records and verify that the receiving account received the intended amount.

401(k) Rollover Taxes Explained

A rollover is not automatically taxable simply because retirement money changes accounts. The tax result depends on what is distributed, where it goes and how the transaction is completed.

0%

Direct Traditional Rollover

A properly completed direct rollover of eligible pre-tax retirement funds to a traditional IRA or eligible employer plan generally does not create current income tax on the rolled-over amount.

20

Indirect Withholding

When an eligible rollover distribution from a retirement plan is paid to you, 20% federal withholding generally applies. This is withholding, not necessarily your final tax liability.

R

Roth IRA Conversion

Moving pre-tax 401(k) money to a Roth IRA generally creates taxable income for the amount converted, although the Roth account can have different tax treatment for future qualified distributions.

Where Can You Roll Over a 401(k)?

The receiving account must be eligible to accept the particular rollover. Not every employer plan is required to accept rollover contributions, so check with the receiving plan administrator.

Destination Common use Tax consideration
Traditional IRA Move pre-tax retirement funds into an individual retirement account. A properly completed rollover of eligible pre-tax funds is generally not currently taxable.
New Employer 401(k) Consolidate an old workplace account into a new employer plan. Depends on whether the new plan accepts the rollover and the type of assets being transferred.
Roth IRA Convert eligible pre-tax retirement funds into a Roth IRA. Pre-tax amounts converted to a Roth IRA are generally included in taxable income.
Another Eligible Retirement Plan Transfer eligible retirement assets between qualifying plans. Treatment depends on the source and destination account types.

Example: Why 20% Withholding Matters

Imagine an eligible $100,000 401(k) distribution is paid directly to you instead of being sent directly to the receiving account.

1

$100,000 Distribution

The old plan makes an eligible rollover distribution payable to you.

20

$20,000 Withheld

At the general 20% mandatory withholding rate, $20,000 would be withheld from the distribution.

+

$20,000 Replacement

To roll the entire $100,000 into the new retirement account, you generally need to replace the $20,000 withholding from another source.

Important Rollover Rules

These are simplified educational summaries. The eligibility of a particular distribution should be confirmed before moving funds.

Rule General treatment
60-day rollover A distribution paid to you generally must be deposited into an eligible retirement account within 60 days.
Direct rollover The plan can generally transfer an eligible distribution directly to another eligible plan or IRA.
20% withholding An eligible rollover distribution from a retirement plan paid to you generally has mandatory 20% federal withholding.
Required minimum distributions RMD amounts generally cannot be rolled over.
Hardship distributions Certain hardship distributions generally are not eligible for rollover.
Receiving plan A retirement plan generally is not required to accept rollover contributions.

More 401(k) Calculators

Use the rest of the calculator cluster to explore contributions, growth, matching, retirement income and withdrawal scenarios.

401(k) Rollover Calculator FAQ

Common questions about moving an old 401(k) to another retirement account.

A direct rollover generally means the retirement plan sends an eligible distribution directly to another eligible retirement plan or IRA. The IRS generally does not require federal income tax withholding on the amount directly rolled over.
A 60-day rollover occurs when an eligible distribution is paid to you and you then deposit the eligible amount into another retirement plan or IRA within 60 days, subject to the applicable rules.
Eligible rollover distributions from employer retirement plans that are paid to you generally have mandatory 20% federal withholding. The withholding can generally be avoided on the eligible amount by choosing a direct rollover.
Generally, yes, but for an indirect rollover you generally need to use other funds to replace the amount withheld if you want the entire gross distribution to be rolled over.
A properly completed rollover of eligible pre-tax funds to a traditional IRA or eligible employer plan generally is not currently taxable. Amounts that are not rolled over can generally become taxable. A conversion of pre-tax funds to a Roth IRA is generally taxable.
A traditional 401(k) can generally be rolled or converted to a Roth IRA when the transaction is eligible, but the pre-tax amount converted is generally included in taxable income.
A new employer plan may accept eligible rollover contributions, but an employer plan is generally not required to accept them. Check with the new plan administrator before initiating the rollover.
No. This tool uses a simplified model focused on common traditional 401(k) rollover scenarios. Special rules can apply to Roth 401(k) balances, after-tax contributions, employer securities, qualified plan loan offsets, beneficiaries and other distribution types.

Plan the Rollover Before Moving Your Retirement Money

Compare the rollover method, destination and potential tax consequences before requesting a distribution from your old plan.

Educational disclaimer: This calculator provides hypothetical estimates for educational purposes only. It is not tax, legal, financial or investment advice. Actual rollover eligibility, withholding, taxable income and additional taxes can vary based on your account type, distribution type, plan rules and individual circumstances. Consult your plan administrator and a qualified tax or financial professional when evaluating a rollover.
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