Moving your retirement savings from an employer-sponsored 401(k) to an Individual Retirement Account (IRA) is often the result of changing jobs. However, this transition strips away the federal shield of ERISA regulations, exposing your nest egg to hidden costs, aggressive civil lawsuits, and administrative oversights.
True financial security requires understanding these structural gaps — ranging from shifting bankruptcy rules to the vanishing of spousal consent protections — and actively managing your retail accounts, such as IRAs, to replicate the institutional safeguards you left behind. Think your rollover is completely safe? Test your knowledge on how moving your 401(k) into an individual retirement account fundamentally alters your legal rights.
Don't worry if you miss an answer; you can follow the links below the quiz to brush up on your knowledge.
More on IRAs, from the Kiplinger team:
- The $9 Trillion Shift: Why Your Retirement is Less Safe in an IRA and How to Protect It
- Four Reasons to Roll Over Your 401(k) into an IRA (And Four Reasons Not To)
- Is Your IRA Protected from Creditors in Bankruptcy?
- How to Roll Over a 401(k) in Five Steps
- IRA Conversion to Roth: Rules to Convert an IRA or 401(k) to a Roth IRA
- Roth IRA Contribution Limits for 2026
