If you've recently been laid off from UPS, you're probably sorting through a mix of emotions, paperwork, and financial decisions. One of the biggest questions we hear from former employees is:
"What should I do with my UPS 401(k)?"
The good news? You have options—and a rollover could help you protect your retirement savings and maintain long-term growth.
💼 Understand Your Rollover Options
The first instinct for many people is to take the money and run. But if you're under 59½, you'll face a 10% penalty, plus taxes. That could wipe out a big chunk of your savings.
Instead, focus on preserving your momentum. After leaving UPS, you typically have four choices for your 401(k):
Leave it in the UPS plan (if balance is over $5,000)
Roll it over into an IRA
Roll it into a new employer’s 401(k) (if applicable)
Cash it out (usually comes with taxes and penalties)
For most people, rolling over into an IRA or 401(k) offers the best combination of flexibility, control, and tax benefits.
🧾 Request a Direct Rollover
A direct rollover means the money moves from your UPS 401(k) directly into your new IRA or 401(k)—without touching your personal account. This helps you:
Avoid taxes and penalties
Stay on track for retirement
Keep the transfer process simple
To do this, contact the UPS plan administrator and ask for a direct rollover to the new account (remember to create the new account first).
⚠️ Watch for These Common Mistakes
Taking the money out “just for now”—then paying big for it at tax time
Letting the account sit too long and forgetting about it
Not choosing a rollover account that aligns with your goals
🧭 Build a Plan for What’s Next
Your 401(k) rollover is more than a transaction—it’s a turning point. It’s a chance to take control of your retirement future and start building a strategy that works for you.
Chances are you might just need someone to walk you through it all.
📅 That’s where we come in. We specialize in helping UPS employees navigate career and financial transitions—without fear, confusion, or missed opportunities.
👉 Schedule Your Complimentary Rollover Consultation Now
Before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock. Please view the Investor Alerts section of the FINRA website for additional information.