Compare 401(k) stay cost with IRA rollover cost
Use this page to compare the workplace plan's all-in cost with the IRA's advisory fee plus fund cost. A lower IRA fee is not automatically a reason to roll. The calculator shows which path ends with more money after fees alone, and the dollar gap between them. It does not tell you to stay or to roll. It does not compute taxes, Roth conversions, or early-withdrawal penalties.
Worked example with the default inputs
Start with a $400,000 balance, 20 years, a 7% expected gross return, a 0.45% plan all-in fee, and an IRA that charges 1.00% advisory plus 0.10% for funds and platform costs. There is no one-time leaving cost and no ongoing contribution in the default run. On fees alone, the plan path ends higher by roughly $163,886. The stay balance is about $1,422,752. The roll balance is about $1,258,865. Year-one fee dollars are about $1,800 in the plan and about $4,400 in the IRA. Your own numbers can reverse that gap. Change the fields until the inputs match your fee disclosure and the IRA quote you received. Share the same screen with an adviser so both of you start from one fee model before you talk about funds, service, or taxes.
| Stay in plan | Roll to IRA |
|---|---|
| Starting balance $400,000 | Starting balance $400,000 |
| Gross return 7% | Gross return 7% |
| All-in fee 0.45% | All-in fee 1.10% (1.00% + 0.10%) |
| Year-1 fee dollars $1,800 | Year-1 fee dollars $4,400 |
| Ending balance after 20 years $1,422,752 | Ending balance after 20 years $1,258,865 |
| Gap: stay higher by about $163,886 on fees alone | Gap: stay higher by about $163,886 on fees alone |
What all-in cost means here
All-in cost is the total yearly percent that reduces growth. For the workplace plan, add fund expense ratios, plan administration fees, and other plan charges that apply to your account. For the IRA, add the advisory percent and the fund or platform percent. Enter each rate in percent points: 0.45 means 0.45%, and 1 means 1%. The page applies the same gross return to both paths, then subtracts each all-in rate each year. That isolates fee drag. It does not forecast markets or pick funds. If your plan quote lists several line items, add them into one plan percent before you type. If the IRA quote bundles advice and funds, still try to split them so you can see each driver.
One-time leaving or rollover costs
Some plans charge an exit fee, a distribution fee, or another cost when assets leave. Some transfers have paperwork or platform costs. Enter those dollars in the one-time field. The roll path starts from the balance after that cost. A large one-time hit can outweigh a small yearly IRA fee for many years. If you have no exit cost, leave the field at zero. Do not put taxes in this field. Tax dollars belong in a separate analysis with a tax professional.
Optional annual contributions
If you will keep adding the same dollar amount each year to whichever account you choose, enter that contribution. The page adds the same contribution to both paths before applying the net return. If the money is already in the old plan and you will not add more, leave the contribution at zero. Do not mix employer match rules into this field unless you are sure both paths would receive the same new dollars. Unequal future contributions make the fee gap harder to read, so keep this field fair.
What this page leaves out
Taxes are out of scope. Roth conversion tax, ordinary income on a cash-out, and state tax rules need a tax professional. Early-withdrawal penalties are out of scope. Plan loans, net unrealized appreciation on employer stock, creditor protection differences, and stable-value or guaranteed funds that may not move to an IRA are also out of scope. The checklist in the results card lists those decision points so you can raise them with a fiduciary. Read the 401(k) rollover adviser FAQ for interview questions, and the fee-only versus fee-based FAQ when you compare how advisers get paid. Fee math is one column on a larger worksheet.
Documentation duty when someone recommends a rollover
When an adviser recommends a rollover from a workplace plan, federal guidance under PTE 2020-02 expects a careful comparison and documentation of why the recommendation is in your interest. This page is not legal advice and does not certify compliance. Ask for a written stay-versus-roll analysis that covers fees, services, investments, and conflicts before you move money.
How to use this calculator
- Open your plan fee disclosure and write the all-in plan percent.
- Get a written IRA quote that separates advisory fee from fund and platform costs.
- Enter your balance, years, and the same expected gross return for both paths.
- Add any one-time leaving cost and any shared annual contribution.
- Read the fee gap and the checklist. Then search advisers who will put the full comparison in writing.
Related tools: the advisor fee calculator, fee and retirement income, and commission versus advisory fee.
Common questions
Does this calculator say I should roll over my 401(k)?
No. The page only compares fee drag. It reports which path ends higher after fees and the dollar gap. Other factors can outweigh fees. A fiduciary should put the full stay-versus-roll analysis in writing.
Does this include taxes, Roth conversions, or penalties?
No. The math ignores taxes, Roth conversions, and early-withdrawal penalties. Use a tax professional for those items. This tool is a fee illustration only.
What does all-in fee mean on this page?
All-in fee is the total yearly percent that reduces growth. For the plan, combine expense ratios and plan admin costs. For the IRA, combine advisory fee and fund or platform costs. Enter rates as percent points, such as 0.45 for 0.45%.
What if my workplace plan is more expensive than the IRA?
Enter the higher plan percent and the lower IRA percents. The results will show whether the roll path ends higher on fees alone. That still is not a recommendation to roll. Check loans, employer stock, creditor protection, and advice quality before you move money.
Where can I find an adviser who will write the stay-versus-roll analysis?
Use Search advisers, then ask each candidate for a written comparison and whether they act as a fiduciary on the rollover recommendation. The 401(k) rollover FAQ lists questions to ask before you move assets.