If Empower runs my old 401(k), does the money have to go to an Empower IRA?

By Kaz · Published 28 September 2026 · How this site checks figures

Summary

No. Empower's own article on rollover options lists rolling to "an Individual Retirement Account (IRA)" with no provider named, next to rolling into a new employer's plan, leaving the money where it is if the plan permits, and cashing out all or part of it. Its instructions say the check should be payable to "the financial services company fbo your IRA," whichever company that is.

Two different Empowers

The name on your old 401(k) statement is Empower the recordkeeper, the company that runs accounts for your former employer's plan. The rules still come from the plan. Empower's article on how to roll over a 401(k) puts it this way for money left behind: "Generally, your account stays subject to your previous employer's plan rules, including investment choices, costs, and withdrawal options." Workplace plan participants reach Empower at 855-756-4738.

Empower the IRA provider is a separate decision. Its rollover page walks you through opening an Empower IRA online and then contacting your prior 401(k) provider. Opening that account does not move the money; the request to the old plan does.

A few things Empower's articles flag

Leaving the money is described as "the simplest option," with two catches: "balances under $7,000 may be automatically forced out of the plan," and "Any unvested employer contributions may be forfeited according to the plan's terms."

If an RMD is due, Empower says "it must be distributed before any rollover takes place."

And once money reaches an IRA, "Funds rolled into an IRA may remain in cash or in a money market fund or other similar investment until you make investment elections."

What Empower's IRAs cost

The Premier IRA is listed with no advisory fee and no minimum, and Empower says it has no sign-up, administrative, or transaction fees, with a footnote that other account fees, fund expenses, and brokerage or service fees may apply. The Premier Managed IRA's fees "start at 0.5% of assets under management." Personal Strategy starts at 0.89% with a $100,000 minimum.

Sources

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