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401(k) Rollover Basics

Move 401(k)s cleanly

401(k) rollovers move funds via direct transfer to new plans or IRAs, keeping tax deferral; avoid cashing out to prevent taxes/penalties.

Choose Destination

Decide between new employer plan or IRA.

Transfer Directly

Use trustee-to-trustee transfers to avoid withholding.

Invest and Track

Reinvest promptly and keep records for basis/rollover.

Related Terms