Rolling Over Your Abandoned Retirement Plan
Let’s be honest—when you changed jobs, you probably left something behind. No, not the weird coffee mug from the office kitchen. I’m talking about your old 401(k), 403(b), or whatever plan your previous employer offered.
It’s just sitting there, quietly ignored, probably wondering if you still care. So let’s talk options—and which one actually makes sense if you want to be efficient, intentional, and maybe a little more hands-off moving forward.
Option 1: Leave It Where It Is
If your old plan allows it, you can just leave the account alone. No harm done... sort of. You won’t be able to contribute to it, and you won’t be able to roll new money in, but you can manage the investments and request distributions when needed.
John’s Top Tip:
Did you take out a loan from your old plan? Double-check how it’s handled post-employment. Some plans let you keep repaying. Others demand a full payoff or count the balance as a taxable distribution (which may surprise you with a 1099 come tax season). If that happens, you can fix it before the tax filing deadline—but talk to a pro.
Option 2: Roll It Into Your New Employer’s Plan
This is often the path of least resistance—and a good one if your new plan is solid.
Why it might make sense:
Consolidates your accounts (less to track)
Employer plans sometimes have lower fees than retail IRAs
The amount you roll over may increase the amount that you can take out as a loan
In some states, ERISA-qualified employer plans offer better protection from creditors than IRAs
John’s Top Tip:
Here’s some big news: we can probably manage your 401(k), 403(b), 457, or TSP now. Even if it’s still with your current employer. This is new, and it’s a game changer. Curious if your plan qualifies? Let’s talk.
Option 3: Roll It Into an IRA
An IRA rollover can be a great choice if:
You want more investment options (not just a list of 15 or so mutual funds)
You’d prefer to have all of your investable assets under one roof with a professional at the helm
You’re fine not having the amount you’re rolling over be eligible for a loan
You don’t plan on doing any backdoor Roth contributions
John’s Top Tip:
Getting money out of an employer plan is harder than putting money in. If you think you’ll eventually want an advisor to actively manage these dollars—or just don’t want to babysit them yourself—rolling to an IRA now can save you hassle later.
And yes, you can still contribute to your current employer plan and roll old funds to an IRA. You’re not locking yourself out of anything.
So What’s the “Right” Move?
It depends. Your life, your career, and your financial goals aren’t one-size-fits-all—and your rollover strategy shouldn’t be either.
But here’s what you shouldn’t do: leave your money sitting in an old plan you haven’t logged into since you quit that job. That’s not strategy, that’s just inertia.
If you're not sure what the best move is, or you're ready to stop managing this stuff solo, I can help you weigh your options—and potentially take the reins.
Reach out any time at jhowe@gencapmgmt.com. Let’s make sure every piece of your wealth picture is doing what it’s supposed to be!
