If you've changed jobs, you probably have a 401(k) from your old employer sitting somewhere. You're not alone—Americans have left behind over $1.35 trillion in forgotten 401(k)s.
What you do with that money matters. The wrong choice could cost you thousands in fees and taxes. The right choice could protect and grow your retirement savings for decades.
Here are your 5 options for an old 401(k):
Option 1: Leave It Where It Is
You can simply leave your 401(k) with your former employer. The money stays invested and continues to grow tax-deferred.
Pros
- * No action required
- * Money keeps growing tax-deferred
- * May have good investment options
Cons
- * Can't contribute more
- * Limited investment options
- * Harder to track multiple accounts
- * May have higher fees
Watch Out for Small Balances
Option 2: Roll to New Employer's 401(k)
If your new employer offers a 401(k) that accepts rollovers, you can consolidate your old account into your new one.
Pros
- * Consolidates accounts in one place
- * Continues tax-deferred growth
- * Can still contribute to it
- * May have loan options
Cons
- * Limited to plan's investment options
- * No gold or precious metals allowed
- * Still stuck with stocks/bonds/funds
- * New employer must accept rollovers
Option 3: Roll to a Traditional IRA
Rolling to a traditional IRA at a brokerage (Fidelity, Schwab, Vanguard, etc.) gives you more control and investment options than most 401(k) plans.
Pros
- * Thousands of investment options
- * Often lower fees than 401(k)
- * Full control over investments
- * Easy to manage online
Cons
- * No employer matching
- * Lower contribution limits than 401(k)
- * Still limited to paper assets (stocks, bonds, ETFs)
- * No physical gold allowed
Option 4: Cash It Out (Not Recommended)
You can withdraw your 401(k) as cash. But this is almost always a terrible idea.
The True Cost of Cashing Out
If you cash out a $50,000 401(k) before age 59½:
You lose nearly 40% immediately—plus decades of tax-deferred growth.
The only time cashing out might make sense is for a true emergency when all other options are exhausted. Even then, a 401(k) loan or hardship withdrawal is usually better.
Considering a Gold IRA Rollover?
Find out which gold company is the best match for your old 401(k).
Take the 60-Second QuizOption 5: Roll to a Gold IRA
Most people don't know this option exists: You can roll your old 401(k) into a Gold IRA—a self-directed IRA that holds physical gold, silver, platinum, and palladium instead of paper assets.
Pros
- * Own real, physical gold
- * Diversify away from stocks
- * Protection against crashes & inflation
- * Same tax advantages as traditional IRA
- * 100% tax-free rollover
Considerations
- * Annual storage fees (~$100-300)
- * Must use IRS-approved custodian
- * Can't store at home (IRS rules)
- * Best for 10-20% of portfolio
Why Consider a Gold IRA?
Learn more about how Gold IRAs work in our complete Gold IRA guide.
Side-by-Side Comparison
| Option | Tax Impact | Investment Options | Best For |
|---|---|---|---|
| Leave It | None | Limited to plan options | Happy with current investments |
| New Employer 401(k) | None (direct rollover) | Limited to plan options | Consolidation, simplicity |
| Traditional IRA | None (direct rollover) | Stocks, bonds, ETFs, mutual funds | More control, lower fees |
| Cash Out | Taxes + 10% penalty | N/A (liquidated) | Emergencies only |
| Gold IRA | None (direct rollover) | Physical gold, silver, platinum, palladium | Diversification, crash protection |
How to Rollover Your Old 401(k)
The rollover process is straightforward, but it's critical to do it correctly to avoid taxes and penalties:
Choose Your Destination
Decide whether you want a traditional IRA, new employer 401(k), or Gold IRA. For Gold IRAs, take our quiz to find the best company.
Open Your New Account
Set up your new IRA or 401(k). For Gold IRAs, your chosen company will guide you through this process.
Request a Direct Rollover
Critical: Request a "direct" or "trustee-to-trustee" transfer. This sends funds directly to your new account without you touching the money—avoiding taxes.
Complete the Transfer
Your new custodian will coordinate with your old plan. The process typically takes 2-4 weeks. For Gold IRAs, you'll then select your precious metals.
Avoid the 60-Day Rule Trap
Frequently Asked Questions
What are my options for an old 401(k)?
You have 5 main options: 1) Leave it with your old employer, 2) Roll it over to your new employer's 401(k), 3) Roll it over to a traditional IRA, 4) Cash it out (not recommended), or 5) Roll it over to a Gold IRA for precious metals diversification.
Can I rollover my old 401(k) to a Gold IRA?
Yes! You can rollover funds from an old 401(k) to a Gold IRA completely tax-free and penalty-free using a direct rollover. This allows you to convert paper assets into physical gold and silver while maintaining tax-advantaged status. See our 401(k) to Gold IRA rollover guide for details.
What happens if I do nothing with my old 401(k)?
If you do nothing, your money stays invested in your old employer's plan. However, you may have limited investment options, higher fees, and difficulty managing multiple accounts. For balances under $5,000, some employers may force a distribution.
How long do I have to rollover my 401(k)?
There's no deadline for a direct rollover. However, if you receive the funds personally (indirect rollover), you have 60 days to deposit them into a new retirement account to avoid taxes and penalties. For simplicity and safety, always choose a direct trustee-to-trustee transfer.
Ready to Put Your Old 401(k) to Work?
Find out if a Gold IRA rollover is right for your retirement goals.
Thomas Richardson
Former wealth manager turned Gold IRA researcher. After 20 years in finance, I got tired of watching scammers prey on retirees. Now I investigate companies and publish what I find—good or bad.