What Should You Do With Your 401k When You Retire?

Your 401(k) is likely your largest retirement asset—so the decisions made about it can have a lasting impact. This episode explores the pros and cons of keeping a 401(k) versus rolling it over to an IRA.

Learn when it makes sense to stay in a 401(k), especially for those retiring between ages 55 and 59½, when a special IRS rule allows penalty-free withdrawals not available in IRAs. Keeping pre-tax funds in a 401(k) may also support more efficient backdoor Roth strategies.

Six key factors influence the decision: cost, control, investment options, account consolidation, ease of use, and coordination across accounts. The discussion also dives into advanced strategies—such as in-plan Roth conversions, the tax treatment of after-tax contributions, and Net Unrealized Appreciation (NUA) for company stock.

The right choice depends on individual retirement timelines, tax strategies, and long-term financial goals. This episode helps uncover what to consider before making a final decision.
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⏱Timestamps:⏱
00:00 - The 401k Retirement Decision
01:00 - When Not to Roll Over
03:38 - Six Key Factors to Consider
09:40 - Different Tax Treatment of Contributions
13:07 - Company Stock and NUA Strategy
14:36 - Early Distribution Penalty
15:13 - Making The Right Choice
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