Common options
Leave the money in the former employer’s plan
Some plans allow former employees to keep assets in the plan. Review the investment menu, fees, services, and withdrawal rules.
Roll it into a new employer plan
If the new plan accepts rollovers, combining accounts may simplify recordkeeping. Compare both plans before moving anything.
Roll it into an IRA
An IRA may offer a different range of investments and services. Compare fees, investment choices, creditor protections, and withdrawal rules.
Take a distribution
A taxable distribution can create taxes and potentially penalties depending on age and circumstances. Understand the consequences before requesting cash.
A rollover is not automatically better.FINRA and the SEC both encourage investors to compare costs, services, investment choices, and other features before deciding whether to roll retirement assets.
Primary investor-education sources
See FINRA’s rollover guidance and the SEC’s Investor.gov for additional educational information.