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When you leave your place of employment, many times you can leave your 401(k) right there and not have to take it out. Other times you might want to withdraw your money, and some companies may encourage you highly to take it out when you leave, although if you have more than $3,500 in the plan, they can’t force you to do so. In any case, there might come a time when you need a place to which you can transfer the money.
You usually have two choices. If you’re merely changing jobs, you can move it to the 401(k) plan at the new company if the company has no time restrictions as to when you can enter its plan. If it does, until you qualify to join the plan (after you’ve been there a year at the latest, by law), you can take advantage of the other option. The other option is to transfer the money from your current plan into an IRA rollover account. If you do this, you can continue to shelter all the money from taxes and invest it for your retirement. You can open an IRA rollover at a bank, mutual funds company, insurance company, or brokerage firm. IRA rollovers are governed by the same regulations as an IRA account.
If you already have an IRA account, be sure to keep the money you’re rolling over from your 401(k) plan apart from your regular IRA contributions; you can put it into a new separate IRA. Later, if you qualify to transfer this money into your current employer’s plan, or a subsequent employer’s plan, you can roll this money back over into a 401(k) at any new company—but only if it’s been kept separate from your original IRA.

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