Should I roll my old 401(k) into my new employer's plan or into an IRA?

Both keep the money tax-deferred, but they differ in tradeoffs. Rolling into your new 401(k) consolidates accounts, preserves potential creditor protection under federal ERISA rules, and keeps the Rule of 55 and 401(k) loan features available. Rolling into an IRA usually opens far more investment choices and often lower fees, and enables strategies like Roth conversions.

One caution: moving pre-tax 401(k) money into a traditional IRA can complicate a future backdoor Roth because of the pro-rata rule. If you may want backdoor Roth access, rolling into the new 401(k) can be cleaner. Compare the fund menus and expense ratios of both options before deciding, and confirm the new plan accepts incoming rollovers.