401(k) to IRA Rollover Calculator
When changing jobs, compare rolling your old 401(k) into a Traditional IRA (tax-free transfer) or converting to a Roth IRA (pay tax today, tax-free forever).
Rollover Scenarios
How to Use This 401(k)-to-IRA Rollover Calculator
Use this tool when you leave a job and need to decide whether to keep the money tax-deferred, convert it to Roth, or avoid a costly cash-out.
- Enter your current balance and time horizon. Your age and retirement age determine how long each rollover path has to compound.
- Set current and retirement tax brackets. These assumptions drive the trade-off between paying conversion tax now or paying withdrawal tax later.
- Compare after-tax winners. Focus on the after-tax values, not just the headline balance, because rollover decisions are mostly tax decisions.
How to Read the Results
Winner
This tells you which rollover path leaves more after-tax dollars under your assumptions.
Traditional IRA (After-Tax)
This assumes the money keeps compounding tax-deferred and is taxed at your future retirement bracket.
Roth IRA (Tax-Free)
This shows the future value after paying the conversion tax up front.
Roth Conversion Tax
This is the immediate tax cost of converting the old 401(k) into Roth dollars.
What to Do Next
How We Reviewed This Tool
Tool-Level Methodology
- Built the rollover comparison around after-tax outcomes so the page compares what users keep, not just which label sounds simpler.
- Checked the educational copy against direct-rollover, withholding, and Roth-conversion distinctions before finalizing the scenarios.
- Used the job-change decision path as the main QA lens: stay in the old plan, move to IRA, or convert part of the balance.
Assumption Review
- The tool uses simplified tax assumptions and does not model every future bracket, state move, or partial-conversion strategy.
- Roth conversion outputs are scenario estimates, not formal tax advice.
- Plan fees, creditor protection, investment menu differences, and backdoor-Roth implications may matter beyond the calculator output.
Update Log
- Rechecked withholding awareness and rollover path explanations against the site's withdrawal content.
- Aligned related links with Roth, withdrawal-tax, and main-planning pages so rollover choices feed into the rest of the site.
- Updated comparison wording to better target rollover and conversion query clusters.
Four Options When You Leave a Job
- Leave it. If your old 401(k) balance is ≥ $7,000, most plans let you leave the money. Simple, but you end up with scattered retirement accounts.
- Roll to the new employer’s 401(k). Consolidation + often lower institutional fees than a retail IRA.
- Roll to a Traditional IRA. Wider investment choices (individual stocks, any ETF/mutual fund). No tax impact.
- Roll to a Roth IRA (conversion). Pay income tax on the full amount now in exchange for tax-free growth forever.
Direct vs Indirect Rollover
Direct (trustee-to-trustee): Your old plan sends funds directly to the new custodian. No withholding, no 60-day clock, no room for error. Always choose this.
Indirect: Check is sent to you. 20% federal withholding applies. You have 60 days to deposit 100% into an IRA — which means covering the withheld 20% from other funds. If you fail, the unrolled portion becomes taxable plus 10% penalty.
Roth Conversion Strategy
Converting a 401(k) to a Roth IRA creates a taxable event in the conversion year. Smart strategies:
- Bracket-fill. Convert only the amount that keeps you under the next tax bracket.
- Low-income year. Convert during unpaid leave, business loss year, or early retirement before SS.
- Pay tax from non-retirement funds. Never pay conversion tax by withholding from the rollover itself — that reduces the amount left to compound tax-free.
Frequently Asked Questions
Should I roll my 401(k) to a Traditional IRA or Roth IRA?
Traditional → Traditional IRA is tax-free. Traditional → Roth IRA is a 'Roth conversion' — you pay income tax on the converted amount but enjoy tax-free withdrawals in retirement. Choose Roth conversion if you expect higher retirement taxes and can pay the conversion tax from non-retirement funds.
What is the 60-day rollover rule?
If you take possession of your 401(k) money (indirect rollover), you have 60 days to deposit it into an IRA. Miss the window and the full amount becomes taxable plus 10% penalty if under 59½. Plus, 20% is automatically withheld for federal tax — you must cover that out of pocket to roll the full amount.
Are there fees for rolling over my 401(k)?
Most custodians (Fidelity, Vanguard, Schwab) do not charge rollover fees. However, your old employer's plan may charge a small processing fee ($20–$75). Direct trustee-to-trustee rollovers avoid the 20% withholding.
Further Reading
- Reviewed by David Jones
- Limits Updated for 2026 IRS contribution caps
- Formulas Verified quarterly
Review & Methodology
- Reviewed by David Jones (calculator methodology).
- Updated for 2026 IRS contribution limits (refreshed after each annual IRS notice).
- Core calculator formulas are re-tested quarterly; limit-driven logic is checked when IRS guidance changes.
- Educational projections only — not investment, tax, or wealth-management advice. Calculations run locally in your browser.