| Leave the money in the existing account: |
Investors can usually leave their existing 401k account in place after going from one job to another. You can start a new 401k account with your new employer. |
| Advantages with this option: |
1. |
You do not have to go through the process of rollover (requires many steps). |
2. |
You do not have to withdraw your money, which would result in heavy penalties. |
|
| Disadvantages with this option: |
1. |
You do not have as much control over your funds. |
2. |
You may be subjected to fees. |
3. |
You must rely on your former employer to manage your 401k account. |
4. |
Generally, loans previously taken are required to be repaid upon termination. |
5. |
No loans are available after termination. |
|
