When you leave an employer, your retirement plan (401(k), 403(b), or 457) remains yours. You have several options for handling your old account. This guide outlines each path, important considerations, timelines, and key steps for rolling your funds to M1.
Quick comparison table
Option | Pros | Cons | Fees | Timeline (Typical) |
Leave in old employer’s plan | No action needed; remains tax-advantaged | Possible minimums, limited investments, ongoing fees | Varies: admin/maintenance fees may apply | Immediate |
Roll to new employer’s plan | Consolidation, payroll contributions, loan access | Limited investment options, plan fees | Varies: rollover fee rare, ongoing plan fees | 1–4 weeks |
Roll into M1 IRA | Wide investment options, full control, support | No loan access, some state-level creditor limits | $0 M1 IRA fee; other brokers may charge out fee | 2–4 weeks (rollover) |
Cash out | Immediate access to funds | Taxes, penalties, forfeited growth | Plan cash-out/distribution fee, IRS penalty | 1–2 weeks |
Your options explained
1. Leave assets in your old employer’s plan
Description: No action required; your retirement money stays in the employer's plan.
Steps to implement: Contact your former plan administrator to confirm you’re eligible to leave the money. Verify any ongoing account minimums, fees, and fund access.
Things to consider:
Administrative/maintenance fees may increase after employment ends.
Investment choices may be limited.
Must comply with plan minimums or be forced to roll over.
Fees: Plan-specific—review your account’s terms.
Timeline: Immediate.
2. Roll assets into your new employer’s plan
Description: Move your old plan money directly to your new employer’s retirement plan (if available).
Steps to implement:
Contact your new plan administrator to confirm they accept rollovers.
Obtain and complete any necessary forms.
Request a direct rollover from your former plan provider to your new plan.
Monitor both accounts for delivery and deposit of funds.
Things to consider:
Loan features and payroll contributions may be available.
Investment menu may be limited.
Possible plan-related fees.
Fees: Most plans do not charge for rollovers, but both old and new plans may have administrative fees.
Timeline: 1–4 weeks.
3. Roll assets into an M1 IRA
Description: Consolidate, control, and invest your retirement money by rolling it into an IRA at M1.
Steps to implement:
Open an M1 IRA (Traditional, Roth, or SEP—must match tax characterization of sent funds).
Request a rollover/transfer from your old plan provider (usually done on their site or by phone). Provide them:
The correct type of M1 IRA account number.
Mailing instructions for checks (payable to "Apex Clearing," including your name and M1 IRA account number.
Mail to: Apex Clearing, c/o BPO, 350 North St. Paul Street #1300, Dallas, TX 75201). See detailed rollover instructions.
Choose direct rollover to avoid incurring taxes.
Track the transfer (use tracking for the check if mailed).
Receive confirmation from M1 when funds are received and posted.
Things to consider:
M1 offers no annual IRA management fee and $0 commission investing.
Wide security/investment choices and flexible Pie editing at any time.
Dedicated client support for the rollover process.
No loan access from IRAs (unlike some employer plans).
Protection from creditors is federally mandated for employer plans, but IRA protections vary by state.
Fees:
$3 monthly IRA fee applies unless you have over $10,000 in assets, an active Personal Loan, or already pay a $3 platform fee.
M1 does not charge fees to receive rollovers.
Your old provider may have an outbound transfer or check issuance fee.
Timeline: 2–4 weeks (plan provider processing and delivery can vary).
4. Cash out your account
Description: Withdraw the funds entirely and take possession of the money.
Steps to implement:
Request a distribution/withdrawal from your former plan provider.
Select payment method (check/direct deposit).
Things to consider:
Subject to taxes as ordinary income.
Possible early withdrawal penalty if under age 59½.
Loss of tax-advantaged investment growth.
Fees: Most plans charge a distribution fee. You will owe federal/state income tax, and usually a 10% IRS penalty if under age 59½ (unless an exception applies).
Timeline: 1–2 weeks.
How to decide
To select the best action for your financial situation, consider:
Investment goals: Do you want more investment choices or lower fees?
Loans: Do you need to be able to borrow against your retirement funds?
Consolidation/ease of management: Would you prefer all your retirement funds in one place?
Future contributions: Do you want payroll deduction for retirement savings?
Creditor protection: Are you concerned with lawsuit or bankruptcy protection?
If you’re unsure, consulting a qualified financial professional or tax advisor is recommended.
Frequently asked questions
How do I start a rollover to M1?
Begin by opening the appropriate M1 IRA.
Follow the M1 IRA transfer instructions for detailed steps, including required check address and payee information.
Are there any fees for rolling over to M1?
$3 monthly IRA fee applies unless you have over $10,000 in assets, an active Personal Loan, or already pay a $3 platform fee.
M1 does not charge a fee to receive IRA transfers. Your current plan may charge an outbound or processing fee.
How long will my rollover take?
Most rollovers or transfers are completed within 2–4 weeks depending on your previous provider’s processing time.
How will I know my funds have arrived at M1?
You will receive an email confirmation and see the deposit in your account activity.
M1 and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
This content was generated using artificial intelligence and is intended for informational and educational purposes only. While reasonable efforts are made to ensure accuracy, AI-generated outputs may omit key context; and should not be construed as financial, investment, legal, or tax advice. Users should independently verify all information and consult a qualified professional before making any financial decisions.
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