Changing jobs is exciting—but it often leaves you with a financial loose end: your old 401(k). It’s easy to forget about it or assume it’s fine where it is, but letting it sit untouched might not be the best move for your future.

So… should you ditch your old 401(k)? Maybe. But let’s take a closer look at what your options are—and when it does make sense to roll it over.

What Happens to Your 401(k) When You Leave a Job?

When you leave an employer, your 401(k) doesn’t follow you. It stays where it is—usually in the plan you had through your former employer—unless you actively move it.

That means:

• You’re still subject to the rules, fees, and investment options of that old plan.
• You might forget about it altogether (it happens more than you’d think).
• Managing multiple accounts can become harder as you switch jobs.

When It Might Be Time to Move On

Here are a few signs that it’s worth taking a closer look at rolling over your old 401(k):

You’re no longer happy with the investment options.

Some employer plans are limited or have high fees. You may find better-performing or lower-cost options in an IRA or your new employer’s plan.

You want everything in one place.

Managing multiple retirement accounts can get messy. Consolidating accounts can make your retirement strategy clearer and easier to monitor.

You’re looking for more control.

Rolling your 401(k) into an IRA gives you more freedom with how and where you invest.

You’re working with a financial advisor.

Your advisor can help manage your retirement savings holistically. It’s harder to do that when a chunk of your portfolio is sitting in a forgotten 401(k) somewhere else.

When It Might Make Sense to Leave It

Sometimes, leaving your old 401(k) where it is can be a smart move—especially if:

• The investment options and fees are excellent.
• You’re between jobs and don’t want to move money until your next role.
• You’re close to retirement and want to delay required minimum distributions (RMDs)—some employer plans allow this.

Your Options for an Old 401(k)

When you leave a job, you typically have four choices:

1. Leave it in your old plan
2. Roll it over into your new employer’s plan (if allowed)
3. Roll it over into an IRA
4. Cash it out (usually not recommended due to taxes and penalties)

Final Thought: Don’t Ghost Your 401(k)

You worked hard for that money—it deserves a plan, even if you’ve moved on. Reviewing your old accounts is one of the easiest ways to tidy up your finances and keep your retirement goals on track.

Not sure what to do with your old 401(k)?
Let’s take a look together. I’ll help you weigh the pros and cons so you can make a smart, confident decision.

Philip Lockwood | Founder + Managing Partner

Address: 1501 Ingersoll Ave. Suite 201  Des Moines, IA 50309 Phone: 515-274-8006

Email: Plockwood@parklandrep.com Website: Lockwood Financial Strategies  Securities offered through Parkland Securities, LLC, member FINRA (FINRA.org) and SIPC (SIPC.org). Investment Advisory services offered through SPC, a Registered Investment Advisor. Lockwood Financial Strategies, LLC is independent of Parkland Securities, LLC and SPC Securities offered through Parkland Securities, LLC, member FINRA/SIPC.