Yes. We handle this regularly.
When you leave an employer, you typically have the option to roll your 401(k) into an IRA rather than leaving it stranded at your old custodian. We open a Rollover IRA at Altruist that matches the tax treatment of your existing account — Traditional 401(k) rolls into a Traditional IRA, Roth 401(k) into a Roth IRA.
The process is straightforward: during onboarding, provide PDF statements from your old account and we’ll coordinate the transfer. Timing varies by custodian, but most rollovers complete within a few weeks.
Traditional vs. Roth — the short version
- Traditional: contributions were pre-tax, growth is tax-deferred, withdrawals in retirement are taxed as income
- Roth: contributions were post-tax, growth is tax-free, qualified withdrawals in retirement are tax-free
Which is better for you depends on where you expect your income to be in retirement relative to today. We can walk through the math during onboarding.
This is general information, not tax advice. Consult a tax professional regarding your specific situation. Investment strategies involve risk of loss.