Orlando, FL — CFP™ Guidance

Roll Over Your 401(k) Plan the Right Way

Left a job and not sure what to do with your old retirement account? Sylvia Linares-Williams, CFP™ helps Orlando-area clients move their 401(k) into an IRA without triggering taxes, penalties, or costly mistakes.

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FINRA / SIPC Member|Kestra Investment Services|Verify CFP™ Credential|(407) 644-4686|startfinancialplan@gmail.com

The Basics

What Is a 401(k) Rollover?

A 401(k) rollover moves your retirement savings from a former employer's plan into an account you control, typically an IRA. When done as a direct rollover, no taxes are withheld and no penalties apply.

Direct Rollover

Your old plan sends funds directly to your new IRA or employer plan. Nothing is withheld for taxes. This is the cleanest, lowest-risk method.

  • No 20% tax withholding
  • No 60-day deadline pressure
  • No risk of accidental taxable distribution
  • Available for traditional and Roth 401(k)s

Indirect Rollover

Your old plan issues a check to you directly with 20% withheld for federal taxes. You have 60 days to deposit the full original amount or the shortfall becomes a taxable distribution with a possible 10% penalty.

  • 20% automatically withheld
  • Must make up withheld amount out of pocket
  • 60-day hard deadline
  • One indirect rollover allowed per 12 months

Decision Framework

Should You Roll Over Your 401(k)?

The answer depends on your plan's fees, investment options, and your situation.

Rolling Over Makes Sense When...

  • Your old plan has high administrative fees
  • Investment options are limited or expensive
  • You want to consolidate multiple old 401(k)s
  • You want more control over how assets are invested
  • You are approaching retirement and want broader income options
  • Your old employer is being acquired or restructured

Leaving It May Make Sense When...

  • Your current plan has excellent low-cost index funds
  • You are between 55 and 59½ and may need penalty-free access (Rule of 55)
  • Your plan holds employer stock with net unrealized appreciation
  • You have outstanding 401(k) loans that would become taxable
  • You plan to roll it into a new employer's plan soon

Side by Side

IRA Rollover vs. Stay in Old Plan vs. New Employer Plan

Three common options when you leave a job. Each has tradeoffs worth understanding before you decide.

FactorRoll Over to IRALeave in Old PlanRoll to New Employer Plan
Investment choicesBroadest — stocks, bonds, ETFs, mutual fundsLimited to plan menuLimited to new plan menu
FeesOften lower — no plan admin layerVaries — may be highVaries by new employer
Required Minimum DistributionsStart at 73 (traditional IRA)Start at 73Can delay if still working
Creditor protectionVaries by state (FL is strong)ERISA protectionERISA protection
Loan accessNo loans from IRAMay allow loansMay allow loans
Rule of 55 accessDoes not applyApplies if 55+ at separationApplies to new plan only
ConsolidationEasiest — combine multiple old accountsStays separateOne new plan

How It Works

The Rollover Process with Start Financial Plan

Four steps from first conversation to fully invested.

01

Free Saturday Session

Sit down with Sylvia at the Orlando office or join by Zoom. Bring your most recent 401(k) statement. We review your account, fees, and options at no cost.

02

Review and Compare

We look at what you have now, what an IRA rollover would give you, and whether staying in the plan or moving to a new employer plan makes more sense for your situation.

03

Initiate the Transfer

If a rollover is the right move, we initiate a direct rollover from your old plan. Funds transfer plan-to-plan with no taxes withheld.

04

Build Your Strategy

Once your IRA is funded, we build an investment allocation aligned with your retirement timeline, risk tolerance, and income goals.

SL
Sylvia Linares-Williams, CFP™
Certified Financial Planner · Start Financial Plan · Orlando, FL

Sylvia helps Orlando-area clients navigate 401(k) rollovers, pension decisions, and retirement income planning. Registered with FINRA, affiliated with Kestra Investment Services. Verify CFP™ at CFP.net

Common Questions

401(k) Rollover FAQ

Answers to the questions we hear most often from clients thinking about a rollover.

What is a 401(k) rollover?

A 401(k) rollover transfers your retirement savings from a former employer's plan to an IRA or new employer's plan. Done as a direct rollover, the money moves plan-to-plan with no taxes withheld and no penalties.

Should I roll over my 401(k) to an IRA?

Rolling over to an IRA typically expands your investment options, reduces fees, and gives you more flexibility in retirement income planning. Whether it makes sense depends on your current plan's cost, your age, and your financial goals. A CFP™ can compare both options with your actual numbers before you decide.

How long do I have to roll over a 401(k)?

If you take an indirect rollover (check made out to you), you have 60 days to deposit it into an IRA or new plan. A direct rollover has no 60-day limit. Most clients choose a direct rollover to avoid the withholding and deadline risk.

Will I owe taxes on a 401(k) rollover?

A properly executed direct rollover from a traditional 401(k) to a traditional IRA is a non-taxable event. If you roll a traditional 401(k) into a Roth IRA, that conversion is taxable in the year it occurs. Sylvia can walk through the tax impact before you initiate anything.

What is the difference between a direct and indirect rollover?

A direct rollover sends funds from your old plan straight to your new IRA with no taxes withheld. An indirect rollover issues a check to you with 20% withheld for federal taxes. You must deposit the full original amount (including the withheld portion) within 60 days or the shortfall becomes taxable income, potentially with a 10% early withdrawal penalty.

Can I roll over a 401(k) while still employed?

Generally, no. Most plans require a triggering event like leaving the employer or reaching 59½. Some plans allow in-service distributions at 59½. Sylvia can review your plan documents to determine your options.

Where can I get help with a 401(k) rollover in Orlando, FL?

Start Financial Plan offers free Saturday advisory sessions where Sylvia Linares-Williams, CFP™ reviews your 401(k) and walks through your rollover options with no obligation. Sessions are every Saturday at 10:30 AM at 2420 S Lakemont Ave, Suite 120, or via Zoom. Call (407) 644-4686 to schedule.

Related Resources

More Ways Start Financial Plan Can Help

A 401(k) rollover is one piece of a larger retirement picture.

Ready to Move Your Old 401(k)?

Join Sylvia on a Saturday morning, in-office or by Zoom. Bring your statement and get a clear answer on your rollover options at no cost.

Reserve a Saturday Spot