What to Know Before You Go
- Brandon Budd
- Nov 11, 2025
- 4 min read
our thoughts on what to do with the retirement savings you’ve built up at your previous employer.
Before you close the door on this chapter of your career, let’s take a minute to talk about something important: your retirement savings. Too many people leave their 401(k) decisions to the last minute—or worse, forget about them entirely. Don’t let that be you.
At intellicents, we get it—big career moves come with big financial choices. And while you might not have a personal finance guru in your back pocket, we’re here to help you think through the options. Let’s break them down and help you understand what might make the most sense for your situation.
Your Retirement Account Options
When you leave a job, your retirement savings don’t automatically follow you. Generally, you have four options:
Leave it where it is
Roll it over to your new employer’s plan
Move it to an Individual Retirement Account (IRA)
Cash out
Each option comes with pros and cons—so let’s take a closer look.
1. Leaving Your Retirement Savings in Your Current Plan
If your former employer allows it, keeping your money in the current plan could be a simple choice. It may make sense if:
The plan offers low fees and solid investment options
You like a “set it and forget it” approach
You’re comfortable with the plan’s resources and tools
Heads up: If your balance is under $7,000, your former employer might automatically roll it into an IRA—or cut you a check (if it’s under $1,000). It's a good idea to check your plan’s rules so there are no surprises.
2. Rolling Over to Your New Employer’s Plan
You may be able to roll your old 401(k) into your new employer’s plan—if they accept rollovers. Here’s why some people like this route:
Fewer accounts to manage
Continued tax-deferred growth
Easier oversight of your retirement savings
Before making this move, take a close look at the new plan. Are the fees reasonable? Are the investment options diverse enough for your goals? If not, it might be worth looking at other choices too.
3. Moving to a Rollover IRA
With a Rollover IRA, your retirement savings continue to grow tax-deferred, and you might gain more control over how it’s invested. Some potential advantages:
You might have more flexibility on your investment choices
Potential for lower fees, depending on the provider
Flexible withdrawal rules (for example, RMDs generally don’t begin until age 73 or later, depending on your birth year)
This option can be a fit for people who value flexibility and choice—but it's worth comparing it side-by-side with your other options.
4. Cashing Out
Seeing that lump sum might be tempting—but unless you absolutely need the money, cashing out could cost you more than you think.
If you're under age 59½, you’ll likely pay a 10% early withdrawal penalty
The entire amount becomes taxable income
You lose out on potential decades of tax-deferred growth
In short: it’s an option, but usually the most expensive one in the long run.
Some Things to Consider
Before deciding, ask yourself:
What are the fees and expenses in each option?
What kind of investment options do I want access to?
Will I need this money soon, or can I let it grow for the long haul?
Do I prefer to manage things myself or keep it simple?
Your answers can help guide you toward a solution that supports your long-term financial goals.
We’re Here to Help You Think It Through
Change can be overwhelming—but you don’t have to figure it all out alone. While this blog is meant to educate, we know that every situation is different. If you have questions, we’re here to talk through your options and help you feel more confident about your financial next steps.
The Power 5: What to Know About Your Retirement Savings When Changing Jobs
Before you leave your job, don’t forget to decide what to do with your retirement savings—making the right move now can set you up for long-term success.
Leave It Where It Is
If the plan’s fees are low and investment choices are solid, it might be the simplest option.
Roll It Over to Your New Employer’s Plan
Consolidating accounts can help reduce clutter and keep your savings on track.
Move It to a Rollover IRA
IRAs offer flexibility, investment control, and may have lower fees.
Cashing Out—Think Twice!
Early withdrawals often come with taxes and penalties—and lost growth.
Ask Yourself These Key Questions
Compare costs, control, and convenience before making a move.
Summary
Changing jobs? Don't leave your retirement savings behind. You typically have four options: keep it in your old plan, roll it over to a new employer’s plan, move it to an IRA, or cash out. Each has trade-offs, so weigh fees, flexibility, and long-term goals. And remember—taking action now can make a big difference later.
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