401(k) Rollover Rules, Taxes & Mistakes to Avoid | According to Plan
In the latest episode of Amplified Wealth’s According to Plan, hosts Kate Fishbein and Tom Farrell tackle an important retirement planning question: what should you do with your 401(k) when you leave an employer?
From old workplace plans and rollover IRAs to tax traps and planning opportunities, they walk through the key decisions individuals should consider before making a move.
Episode Highlights:
🔎 Don’t Forget Old 401(k)s:
Learn why so many retirement accounts get left behind — and how the Department of Labor’s Lost and Found tool may help you track them down.
🏢 Why Leave Funds in a 401(k)?
Kate and Tom explain several potential advantages, including creditor protection, possible loan provisions, Rule of 55 access, and delayed RMD opportunities for some workers.
🔄 When an IRA Rollover May Make Sense:
Explore why some investors prefer rolling old 401(k) assets into an IRA for greater investment flexibility, easier consolidation, and simplified account management.
⚠️ Avoid Costly Rollover Mistakes:
Not all retirement dollars are the same. The episode breaks down the importance of properly handling pre-tax, Roth 401(k), and after-tax funds to help avoid unnecessary taxes and penalties.
📉 Fees, Investment Options and Hidden Costs:
Find out what to review inside your 401(k), from administrative fees to fund expense ratios, and why comparing those costs to an IRA matters.
🚨 Special Situations to Watch Closely:
From backdoor Roth strategy considerations to employer stock and NUA rules, Tom and Kate highlight a few areas where one wrong move could have lasting tax consequences.
And much more!
Timestamps:
0:00 - Introduction
3:15 - Advantages of Leaving Funds in 401(k)
22:40 - Advantages of Rolling Over into an IRA
37:35 - Things to Watch Out For if Rolling Over
50:15 - Wrap Up & Conclusion
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