The Biggest 401(k) Rollover Mistake Isn’t What You Think

Most advice around 401(k) rollovers focuses on getting the paperwork right.

And while that matters, the bigger mistake usually happens earlier, when the decision is made about where the money goes.

When you leave a job or retire, it’s common to receive a recommendation to roll your account into an IRA—often from the same firm that held your 401(k). It’s simple, familiar, and easy to act on. But that recommendation isn’t always made under a fiduciary standard, meaning it may not be fully aligned with your best interests.

What’s often overlooked is how much changes after the rollover. In many cases, funds that were previously invested automatically can end up sitting in cash—sometimes for extended periods—if no action is taken. Over time, even small differences in how the account is managed can lead to significantly different outcomes.

In this video, we cover:

• Why the rollover decision is more than just paperwork
• How recommendations are often made—and why that matters
• What changes when money moves from a 401(k) to an IRA
• Common pitfalls, including uninvested cash
• How to approach the decision more intentionally

Rolling over a 401(k) isn’t inherently right or wrong. But it is a structural decision—one that can shape your long-term retirement outcomes.