Roll Over to an IRA

Roll the balance into an individual retirement account (IRA). Consolidating with one financial institution can make it easier to monitor your accounts, manage your retirement savings savings and schedule required minimum distributions in retirement.

Roll Over to Your New Employer’s Retirement Plan

Your new employer’s plan may have more investment options or charge lower fees. If they accept rollovers, you might consider moving to their plan.

Leave It Alone

Keep your money in your soon-to-be former employer’s plan. If you’re happy with the plan’s investment options and fees and don’t mind tracking multiple accounts, then keeping your money where it is might be an option for you.

Cash It Out

If you decide to cash it out, you’ll actually collect only a portion of your balance, because you’ll owe taxes at your current income tax rate along with a 10 percent penalty if you’re younger than age 55. While this hit may not seem like much, withdrawing money now could mean tens of thousands of dollars in lost income over a couple of decades.