401k Calculator & Guide
Learn how to move an eligible 401(k) balance into an IRA, how direct rollovers work, what happens with taxes and withholding, and the differences between a traditional IRA and Roth IRA destination.
A 401(k) to IRA rollover moves eligible retirement-plan assets from an employer-sponsored 401(k) into an individual retirement account. A properly completed rollover can generally keep eligible funds within a tax-advantaged retirement account.
Pre-tax 401(k) money can generally be rolled into a traditional IRA without current federal income tax when the rollover is properly completed.
A traditional 401(k) can generally be rolled into a Roth IRA, but previously untaxed amounts are generally included in income.
The plan administrator sends the eligible funds directly to the receiving IRA, generally avoiding mandatory withholding on the transfer.
The IRS generally permits most eligible workplace-plan distributions to be rolled into an IRA. However, some distributions are excluded from rollover treatment, so the type of distribution matters.
The biggest tax distinction is whether your destination preserves traditional tax treatment or moves previously untaxed money into a Roth account.
A qualifying rollover of traditional pre-tax 401(k) funds to a traditional IRA generally does not create current federal income tax.
Rolling traditional 401(k) funds into a Roth IRA is generally treated under Roth conversion rules.
Designated Roth 401(k) funds follow different rollover rules from traditional 401(k) money.
The process is generally straightforward when the plan and receiving IRA are prepared before the transfer is requested.
Check your balance, vested amount, account type and available distribution options.
Establish the appropriate traditional IRA or Roth IRA before requesting the rollover.
Make sure the receiving institution accepts the type of rollover you intend to make.
Ask the 401(k) administrator to transfer the eligible funds directly to the IRA.
Confirm the money arrived and keep the rollover statements and tax documents.
The IRS allows both direct rollovers and 60-day rollovers for eligible distributions, but the mechanics are different.
| Feature | Direct Rollover | 60-Day Rollover |
|---|---|---|
| Who receives the money? | The receiving IRA | You receive the distribution first |
| Timing | Transfer is made directly | Generally must be deposited within 60 days |
| 20% federal withholding | Generally no withholding on the direct transfer | Generally applies to taxable eligible plan distributions paid to you |
| Replacement funds | Generally no withheld amount to replace | Other funds may be needed to roll over the full distribution |
| Administrative burden | Generally simpler | Requires careful timing and documentation |
When a 401(k) distribution is paid directly to an IRA, federal income-tax withholding generally does not apply to the transfer amount. If the distribution is paid to you instead, an eligible taxable plan distribution generally has 20% federal withholding.
Whether the rollover creates current taxable income depends largely on the type of money in the 401(k) and the type of IRA receiving it.
A properly completed rollover of eligible pre-tax 401(k) money into a traditional IRA generally preserves tax deferral. The amount generally becomes taxable when distributed from the IRA.
A rollover from a traditional 401(k) to a Roth IRA generally follows Roth conversion rules. Previously untaxed amounts generally must be included in gross income for the year of the conversion.
Designated Roth 401(k) money can generally be rolled into a Roth IRA. Roth contributions and earnings have different tax histories, so rollover records should be retained.
A rollover keeps eligible assets within a retirement account. Taking the money as cash can result in taxable income and, where applicable, an additional tax on early distributions.
The following example illustrates the difference between a traditional rollover and a Roth conversion. It is not a tax estimate for an individual.
| Scenario | Destination | General Tax Treatment |
|---|---|---|
| $100,000 traditional 401(k) | Traditional IRA | Generally remains tax-deferred if properly rolled over |
| $100,000 traditional 401(k) | Roth IRA | Generally included in taxable income as a Roth conversion |
| $100,000 Roth 401(k) | Roth IRA | Roth rollover rules apply; basis and earnings remain relevant |
Some 401(k) accounts contain a combination of pre-tax and after-tax money. IRS rules allow certain distributions to be allocated between different rollover destinations.
Pre-tax amounts can generally be rolled to a traditional IRA or another eligible pre-tax retirement plan.
Certain after-tax contributions can be directed to a Roth IRA under the applicable rollover rules.
Earnings associated with after-tax contributions are generally treated as pre-tax amounts for rollover purposes.
IRS rules generally require a plan distribution containing both pre-tax and after-tax amounts to include a proportional share of each. Under applicable rules, a single distribution can sometimes be directed to multiple destinations, such as pre-tax amounts to a traditional IRA and after-tax amounts to a Roth IRA.
Most eligible distributions can be rolled over, but the IRS identifies several categories that generally cannot.
RMD amounts generally cannot be rolled over.
Certain hardship distributions from an employer plan generally cannot be rolled over.
Certain excess contribution or excess deferral distributions generally cannot be rolled over.
Some substantially equal periodic payments and long-term payment arrangements are excluded.
A loan treated as a distribution can have special rollover rules.
Certain dividends and distributions involving employer securities have special rules.
Moving money to an IRA changes the account structure. Compare the features before initiating the rollover.
| Feature | 401(k) | IRA |
|---|---|---|
| Investment menu | Generally selected by the employer plan | Depends on IRA provider and available investments |
| Employer contributions | May include matching or other employer contributions | No employer match |
| Plan fees | Depends on employer plan | Depends on IRA provider and investments |
| Future workplace contributions | Can receive employee contributions if eligible | Separate IRA contribution rules apply |
| Rollover destination | Can accept eligible rollovers if plan permits | Can accept eligible plan-to-IRA rollovers |
| Loan feature | Some 401(k) plans may offer loans | IRAs do not offer 401(k)-style participant loans |
Review these items before requesting your rollover.
Receiving the money yourself can trigger mandatory withholding and the 60-day rollover requirement.
With a distribution paid to you, replacing withheld funds may be necessary to roll over the full eligible amount.
Moving traditional 401(k) money to a Roth IRA generally creates taxable income on previously untaxed amounts.
Compare the old plan and IRA's available investments, fees and services before moving assets.
RMDs, hardship distributions and several other categories are generally excluded from rollover treatment.
Keep statements and tax documents showing where the retirement funds were transferred.
Explore the complete 401(k) rollover options and rules.
Learn about the tax treatment of converting traditional 401(k) money into a Roth IRA.
Understand your options for an account from a former employer.
Learn how a direct transfer works.
Understand the 60-day rollover process and withholding.
Learn when a rollover can create taxable income.
Explore Roth-specific rollover rules.
Explore an illustrative rollover and withholding scenario.
Use the rollover calculator and continue through the rollover cluster to understand the mechanics, tax treatment and destination options.
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.
© Copyright 2026. All Rights Reserved.