Transfer the money to your new employer's 401(k)If your new employer's plan allows it, you may transfer your old 401(k) savings into your new 401(k) plan. In Lester's view, "rolling your old account into your new employer's 401(k) plan should be your default unless there's a good reason not to." If you don't do that, your old plan will send a check directly to you when it closes out your account. When rolling over 401(k) funds into an IRA, make it a "direct rollover" just as you would when moving money from an old 401(k) to a new one. Cash outThough it may be tempting, the worst of your four options is to cash out your 401(k) savings.

Source: CNN January 07, 2022 11:22 UTC