If the plan allows, you may be able to keep your 401(k) in your previous employer’s retirement plan after you leave the company. Consider the following questions:

Are you eligible to leave your 401(k) in the plan?

•Is any paperwork required to initiate a transfer?

•Will you still be able to adjust your investment allocations?

Why someone might choose this option:

•The new employer’s plan may have a waiting period before you can enroll, and you plan to transfer your 401(k) later. •The current plan may have lower fees.

•The old plan’s investment choices may better align with your strategy.

If your new employer’s retirement plan allows rollovers, you may be able to transfer your old 401(k) into it. Before making a move, it’s important to evaluate the new plan carefully by considering:

•How the investment options, fees, and management costs compare between the two plans

•How long it may take to be eligible for a rollover into the new plan

•Any fees associated with the rollover process

•How account ownership works — in a qualified plan, you're a participant, not the owner, and the plan administrator controls how your funds can be transferred

You have several ways to move your 401(k) through a direct rollover:

401(k) to Traditional IRA: Transfer your 401(k) into an existing IRA or open a new one. The process involves coordination with your former plan administrator, HR team, and a financial advisor to complete the necessary paperwork.

Roth 401(k) to Roth IRA: Move your Roth 401(k) into an existing or new Roth IRA without triggering taxes. Any recent earnings grow tax-deferred, and withdrawals are tax-free if the account has been open at least five years and you're age 59½ or older.

401(k) to Roth IRA (Conversion): If allowed, you can roll over your traditional 401(k) into a Roth IRA. This is a taxable event, so consult a tax advisor beforehand. Future earnings in the Roth IRA may be withdrawn tax-free once the five-year rule is met and you’re at least 59½.

What to evaluate before rolling over to an IRA or Roth IRA:

•Any fees or costs associated with the rollover process

•The investment options, expense ratios, and possible commissions in the new IRA account

An annuity is a financial contract with an insurance provider designed to deliver regular income during retirement—either for a set number of years or for the rest of your life. It's often used to reduce the risk of outliving your savings and can be funded through monthly contributions or a one-time payment, such as a 401(k) rollover.

There are three common types of annuities used in retirement planning: fixed, indexed, and variable. Each comes with its own benefits, drawbacks, and costs. As with any financial decision, it’s important to carefully evaluate the risks and understand the product before including an annuity in your retirement strategy.

Taking a full cash withdrawal from your 401(k) is considered a taxable event, regardless of your age. Before choosing this option, keep the following in mind:

•If you're under age 59½, a 10% early withdrawal penalty will apply.

•Income taxes are due immediately on both your contributions and any investment gains.

•The IRS allows penalty-free withdrawals after age 59½ and requires mandatory distributions (RMDs) starting at age 73 (increasing to 75 in 2033).

•Some exceptions may apply depending on your plan, so it’s important to speak with your plan administrator before taking action.