What do you do with your 401-k when you are leaving a job?

Answer by  technogeek (6640)

When your old company's HR department cashes out your 401-K, you should take it and deposit a part of it into a Roth IRA and invest the rest in mutual funds. This was, you have a retirement nest egg and you also have some investment income that you can gain dividends from.

Answer by  AloysiusP72 (96)

The administrator for your 401K plan should send you a letter with your options. You have three choices: you can roll over the money in your plan to the plan at your new job; you can roll over the money to an IRA; or, you can cash it out.

Answer by  tface1000 (147)

You can cash it out, but will have to pay taxes and penalties. You can avoid that if you roll it over into another tax deferred plan.

Answer by  Alisa (903)

You can talk to your human resources office at your place of employment. They will give you the information on how to roll it into one you can manage yourself.