Whether you've retired, quit, found a new job or been laid off, you have a few options with your employer-sponsored plan when you part ways with your former company.

Option 1 - Open an IRA and roll funds out of your former 401(k)

You can roll over your former 401(k) into an IRA. This can be beneficial if you are looking to diversify and want more autonomy to make transactions. For more details about the advantages and disadvantages of rolling your 401(k) into an IRA see the article here.

For details on how to roll over your 401(k) into an IRA see the article here.

Option 2 - Roll funds into a new employer 401(k) plan

Many 401(k) plans permit 401(k) rollovers from previous employers. This can be a great and affordable option if you are looking for one consolidated retirement account. Please note, not all 401(k) plans allow this. Furthermore, this is not an option if you are retired or haven't found a new job.

Option 3 - Leave your funds in the plan

As long as you have the minimum amount required (which varies from plan to plan) you have the option to leave your funds invested in your former plan. If you don't know the minimum you can contact your fund's record keeper for details.

Note: Investment options and fees may change, and you don't want to be taken by surprise.

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