When you leave a job, it’s important to make sure the cash you stashed in your 401(k) follows along. Some are tempted to cash out the account and suffer the penalty, but the savvy choice is to roll it over into a new account.
Smart On Money tells you how to move your 401(k) into an IRA. The option makes sense if you haven’t started working at a new place that offers a 401(k), and provides flexibility while you plot out your next move.
To roll your account into an IRA, first you’ll need to open the account, then check with your old company’s HR department to see if there are any restrictions on the funds. Your new IRA provider should be able to hook you up with transfer paperwork. After you complete the process, it’s a good idea to verify that your dollars all made the trip without leaving any of their brothers behind.
How To Do A 401k To IRA Rollover [Smart On Money]