Free tool
Should you roll all of your 401(k) to an IRA?
The biggest unspoken question after leaving a job: “What if I need this money?” This tool walks through your emergency runway, age, and early-access options (Rule of 55, Roth basis, 72(t)) to recommend a strategy.
The early-access toolkit
- Rule of 55
- If you separate from service in the year you turn 55 or later, you can take penalty-free withdrawals from your old 401(k) — but only from the 401(k), not after you roll to an IRA. Lost permanently once you roll.
- Roth IRA basis withdrawal
- Contributions (not earnings) can come out anytime, tax-free, penalty-free. If you have an existing Roth IRA with contributions in it, this is your emergency-access path.
- 72(t) early-withdrawal plan
- Take equal monthly withdrawals from your IRA before age 59½ with no early-withdrawal penalty — but you have to keep taking them for at least 5 years or until you turn 59½, whichever is longer. Inflexible but powerful for known income needs.
- Hardship withdrawal exceptions
- IRA penalty exceptions exist for medical expenses, higher education, first-time home purchase (up to $10K), and unreimbursed medical insurance during unemployment. Narrow but available.
This tool provides educational information based on IRS rules. It is not personalized financial or tax advice. Consult a CPA or licensed financial advisor for advice on your specific situation.