Why should I consider a 401(k) rollover when switching jobs?

March 1, 2026

By Joseph D. Novak

March 1, 2026

Family Finance.jpg — designer491 / iStock via Getty Images

With stagnant wages and persistent inflation, nearly half of employees in the United States are expected to apply for a new job this year. Those who are successful, though, might make the mistake of forgetting about the retirement plans they had with a previous employer.

Many employers offer retirement plans — most often a 401(k) or 403(b), while government employees may have a Thrift Savings Plan. Participation in such plans allows employees to contribute a percentage of their income, while employers may offer a predefined matching contribution. Unfortunately, these accounts will not automatically follow you to your new job. You will need to decide whether to “roll over” your previous employer plan assets into your new employer’s plan, if they accept rollovers, or move them into a personal investment account.

Typically, this would be an Individual Retirement Account (IRA). The most common are Traditional and Roth IRAs. These accounts offer tax advantages: Traditional IRAs allow you to make pre-tax contributions — which may lower your taxable income — but distributions are taxed. Roth IRAs are funded with after-tax dollars, allowing for tax-free distributions in retirement. In either case, you also have the option to work with providers that offer faith-based investments solutions that align with your Catholic values.

At Knights of Columbus Asset Advisors, we assist with this process and can help facilitate rollovers into an appropriate IRA. Doing so helps preserve the tax-qualified status of your assets and avoid unnecessary penalties or fines. To better understand your options and make an informed decision, contact your advisor or visit kofc.org/familyfinance.

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— Joseph D. Novak is director of Investment Advisor Services and Sales Support and a member of St. Thérèse of Lisieux Council 8013 in Trumbull, Conn..

*Investment Advisory Services offered through KoCAA. Investing involves a risk of loss.

Why should I consider a 401(k) rollover when switching jobs?

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