Should You Roll Over Your 401(k) to an Advisor-Managed Account?

By Christian Campbell, Business Development Manager | Updated October 15, 2026

When you leave an employer, you generally have four options: leave your 401(k) in the old plan, roll it into your new employer's plan, roll it into an IRA, or cash it out. Cashing out usually means income tax plus a 10% penalty if you're under 59½.

Why many choose an advisor-managed account

One plan instead of scattered accounts; more investment choices, including values-based options; a portfolio built around your goals and timeline; retirement income and Social Security coordination; tax planning with your CPA (Roth conversions, RMDs); easier beneficiary and estate coordination; and an advisor to call when things change.

When staying in your 401(k) may make sense

Your plan has very low costs (advisory accounts usually carry a fee); you left your job at 55 or older and want penalty-free withdrawals before 59½; you hold company stock that may qualify for NUA tax treatment; you want the federal creditor protection 401(k)s generally provide; or you're still working and want to delay RMDs.

How to roll over the right way

If you roll over, request a direct rollover. If a check is made out to you, 20% is generally withheld and you have 60 days to deposit the full amount.

How we can help

We'll review your plan's costs and features against your other options. If a rollover doesn't make sense, we'll tell you.

Disclaimer: This article is for educational purposes only and is not a recommendation to roll over a retirement account. Compare fees, investment options, services and protections before deciding. Inspire Advisors, LLC does not provide tax or legal advice.