401(k) rollover comparison template for advisors and students

Stop guessing — compare your 401(k) and rollover IRA side-by-side in minutes

Manual fee comparisons, confusing tax trade-offs and incompatible fund menus waste advisor time and confuse students learning retirement planning. If you want a clear, auditable way to decide whether to leave a balance in an employer 401(k), roll to a rollover IRA, or convert to a Roth, you need a structured, side-by-side worksheet that captures fees, fund options, tax treatments and portability—all in one view.

Why this matters in 2026 (and what’s changed)

Recent trends through late 2025 and early 2026 make careful comparison more important than ever:

• Wider ETF adoption in employer plans reduced expense ratios for many fund menus, changing the fee math for staying vs rolling.
• Fee transparency rules and adviser disclosure expectations (post-SECURE Act 2.0 era) mean clients expect auditable fee comparisons and written rationale.
• Pooled plans and open MEPs increased portability options—some employer plans now offer institutional share classes you won’t replicate in a retail IRA.
• Robo-advisor and hybrid advisory integrations make managed rollover IRAs cheaper and easier to maintain, shifting the trade-off from pure fees to service value.

What this template does — at a glance

The side-by-side worksheet is designed for advisors, students and teachers. It helps you:

• Compare all direct and indirect fees across an employer 401(k) and a proposed rollover IRA
• List fund options and identify unique institutional share classes or unavailable funds
• Model tax outcomes for direct rollovers, 60-day rollovers and Roth conversions
• Estimate long-term cost differences using fee-drag simulations and break-even dates
• Record portability constraints (loans, plan rules, creditor protection, RMD differences)

Core worksheet sections

Use the following sections in your spreadsheet. The template includes these fields and pre-built formulas so you can run comparisons instantly.

1. Account Overview
   • Plan / IRA provider
   • Account type (Traditional 401(k), Roth 401(k), Traditional IRA, Roth IRA)
   • Balance
   • Date of separation / rollover
2. Fee Breakdown
   • Fund expense ratios (weighted average)
   • Administrative/recordkeeper fees (flat or %)
   • Advisory or wrap fees
   • Trading/commission costs
   • Other fees (termination fees, load fees, mutual fund revenue sharing)
3. Fund Menu & Options
   • Number of funds
   • Index vs active split
   • Available share classes (institutional vs retail)
   • Availability of ETFs vs mutual funds
4. Tax & Distribution Rules
   • Traditional vs Roth tax treatment
   • Rollover tax implications (direct rollover, 60-day rollover, withheld tax)
   • Required minimum distribution (RMD) treatment and any plan exceptions
5. Portability & Special Features
   • Loan availability and outstanding loans
   • Creditor protection (ERISA vs IRA state law differences)
   • Beneficiary naming flexibility
   • Plan restrictions (hardship, partial distribution rules)
6. Comparison Outputs
   • Net annual fee drag (formula-driven)
   • Projected balances after N years (with/without fee drag)
   • Break-even horizon for rolling vs staying
   • Recommended action and audit notes

Step-by-step: How to use the template (practical guide)

Open the spreadsheet in Google Sheets or Excel and follow these steps. Each step maps to a worksheet tab in the template.

1. Enter baseline account details

Input the plan name, provider, current balance and account type. For the rollover IRA column, enter the target custodian and the IRA account type you plan to open.

2. Populate the fee fields

Collect these figures from plan documents and IRA provider disclosures:

• Weighted average expense ratio for the plan's investments (expressed as %)
• Plan administrative fee as a % or dollar amount
• Any advisory or wrap fee charged to the account

The template converts dollar fees into an equivalent percentage so you can compare apples-to-apples.

3. Record fund menu differences

List the popular funds or fund categories and note whether each is available in the plan and the rollover IRA. Flag institutional share classes and ETF availability. This helps spot funds you would lose access to if you roll.

4. Model tax scenarios

Choose the rollover type:

• Direct rollover (recommended) — transfer from plan to IRA without taxes.
• 60-day rollover (risky) — plan sends check to you; withholding may apply and mistakes cause taxes/penalties.
• Roth conversion — triggers ordinary income tax on pre-tax balance converted.

Enter the client’s marginal tax rate to see the tax cost of a conversion and how that impacts net rollovers.

5. Run the fee-drag projection

The template contains two simple projection models (conservative & moderate return assumptions). It uses this formula for future value:

FV = PV × (1 + (gross_return – fee))^n

Where fee is the total annual fee expressed as a decimal. The worksheet shows both the direct-cost comparison and the compounding drag over 10–30 year horizons. This helps answer questions like, “How long until the lower fees of the employer plan overcome the broader fund choices in an IRA?”

6. Check portability and protections

Note that ERISA-protected 401(k) assets often have stronger federal creditor protection than IRAs in some states. The template lists the commonly relevant items and suggests which clients might prefer to keep funds in plan for creditor protection or loan access.

7. Write the decision rationale

Use the generated summary box to capture the recommendation: Stay, Roll to Traditional IRA, Roll + Convert to Roth (partial), or Split. Include action steps and required paperwork (e.g., request direct rollover form, custodial account opening link).

Example scenario (worked example for students)

Use this as a classroom exercise. Inputs:

• Balance: $150,000
• Employer 401(k) weighted fee: 0.70% (includes recordkeeper fee)
• IRA weighted fee at proposed custodian: 0.35% (using ETFs + $25 annual platform fee)
• Expected gross return: 6% annually
• Time horizon: 20 years

Projection (simplified):

• 401(k) net return = 6% - 0.70% = 5.30% → FV = 150,000 × (1.053)^20 ≈ $422,000
• IRA net return = 6% - 0.35% = 5.65% → FV = 150,000 × (1.0565)^20 ≈ $466,000

Difference after 20 years: ≈ $44,000 favoring the IRA. But the worksheet also flags lost institutional share classes in the plan worth an estimated 0.15% benefit if they stay (reducing the gap) and creditor protection advantages for the 401(k).

Advanced strategies and 2026 considerations

For advisors and advanced students, the template includes extras to reflect current industry shifts:

• Hybrid approach: Keep a core balance in the employer plan for creditor protection and low-cost index exposure; roll excess to a low-fee IRA for more flexible estate planning or Roth conversion layering.
• Partial Roth conversions over time: Use the template to model multi-year Roth conversion sequencing to manage tax brackets (especially relevant after the 2022–2026 tax environment changes and increased use of tax-loss harvesting techniques in taxable accounts).
• ETF swapping and tax-efficient fund layering: With ETF adoption in plans, the distinction between plan and IRA funds narrows; use the fund menu matrix to identify where tax efficiency matters most.
• Fee litigation and disclosure trends: Post-2025, more participants request fee-breakdowns. Keep a documented recommendation to reduce fiduciary risk.

Template Variants & Pricing (product page style)

We offer three versions depending on your needs:

• Free Basic Template — CSV/Google Sheets: Fee fields, fund menu checklist, basic projections (suitable for students and classroom use).
• Pro Template ($29) — Excel + Google Sheets: All core sections, automatic weighted fee calculator, built-in fee-drag projection, printable recommendation summary, export to PDF/CSV.
• Advisor Bundle ($99) — Pro Template + Client-ready reports: Customizable PDFs, versioning for audits, step-by-step client email templates, and an LMS-ready SCORM package for teaching.

All paid templates include a one-page methodology document, worked examples and a short video walkthrough. Bulk and classroom licensing available.

Teaching use cases and classroom exercises

Designed for teachers and lifelong learners — here are three exercises you can run in a single session:

1. Mock client: Compare fees and decide stay vs roll. Present a one-slide justification.
2. Roth conversion game: Given three tax brackets and three time horizons, build the conversion sequence that minimizes lifetime taxes.
3. Portability case study: Analyze creditor protection vs liquidity using state law variations and determine where to leave funds.

Trusted sources & methodology (brief)

Our calculations use standard time-value-of-money models and weighted-average expense ratio methods widely adopted in industry research. For regulatory background we incorporate principles from the SECURE Act 2.0 era and common plan disclosure practices current as of early 2026. Always validate tax-sensitive scenarios with a tax professional.

“A documented, numeric comparison reduces client friction and protects advisors. In 2026, clear worksheets are not optional — they're a best practice.”

Quick checklist before you recommend a rollover

• Confirm direct rollover option (avoid 60-day mistakes)
• Verify institutional share classes and whether they’re available post-roll
• Estimate fee drag over the realistic time horizon (5, 10, 20 years)
• Discuss creditor protection and loan needs with the client
• Run tax projections for Roth conversion scenarios
• Document the decision and retain the worksheet with client consent

Actionable takeaways

• Always compare the total fee picture, not just fund expense ratios—administrative and advisory fees matter.
• Use the worksheet to quantify trade-offs; a few basis points compounded make large differences over decades.
• Consider split strategies: keep some assets in-plan for protections and roll the rest for flexibility.
• For students: practice with the worked example to build intuition on fee drag and tax sequencing.

Next steps — get the worksheet and start comparing

Download the free basic template to try the side-by-side comparison with a real 401(k) statement. Upgrade to the Pro or Advisor Bundle if you want client-ready PDFs, advanced projections and LMS integration. Each template includes a methodology note and step-by-step video so you can confidently explain your recommendation.

Ready to run your first comparison? Download the free template, plug in your numbers, and generate a client-ready recommendation in under 15 minutes. For advisors: consider the Advisor Bundle to streamline client reporting and maintain audit trails.

Questions about a specific plan, state creditor protections, or Roth conversion sequencing? Contact our support team or schedule a 20-minute template walkthrough with one of our retirement toolsmiths.

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