Quick answer
What this tool helps you decide
The usual paths are leaving money in the former plan, making a direct rollover to an IRA, moving it to a new employer plan if accepted, or taking a distribution. Taxes, fees, investment choices, withdrawal access, age exceptions, and any plan loan determine the trade-off.
How to use the result
- STEP 1
Get the summary plan description, fee disclosure, balance, and loan information.
- STEP 2
Model only the cash you are considering—not the whole account by default.
- STEP 3
Ask how a direct rollover, outstanding loan, withholding, and age exception apply before submitting forms.
Frequently asked questions
Is a direct rollover taxable now?
A properly executed direct rollover generally avoids current taxation, but verify the transaction and account type with the plan administrator or a tax professional.
What is the Rule of 55?
A potential exception to the additional tax may apply to distributions from the employer plan after separation in or after the year you turn 55. It is fact-specific and does not automatically apply to IRAs.
What happens to a 401(k) loan?
The plan terms and tax rules determine whether repayment, offset, or rollover treatment is available. Ask for the exact deadline and amount in writing.
Put the four common paths side by side
Decision helper
$6,800 estimated cash after tax
Leave in former plan: $50,000
Direct rollover after entered loan: $50,000
Illustrative tax/additional tax: $3,200
Rule of 55 review: Not indicated by these answers
This is not a tax determination. Plan rules, withholding, age exceptions, Roth money, and loan offsets can change the result.