How does your 401(k) move with you when you change jobs?

What do you have to do, who to call to ensure your 401(k) goes with you to the next job?

Is it easier to open a 401(k) outside of the job?How does your 401(k) move with you when you change jobs?
You can leave it, roll it to a new job's 401k, or open an independent IRA.

Generally the independent IRA is the best plan because it will let you put it into more diversified funds, while an employer's 401k will give you limited options.How does your 401(k) move with you when you change jobs?
When you leave a job, you have three choices:

1. Leave the old 401(k) in place IF that plan so permits.

2. Roll it into a new 401(k) plan at your new employer IF that plan so permits.

3. Roll it over into an IRA.



You cannot ';open a 401(k) outside of the job.'; They are employer-sponsored plans.
You can't move the money from one 401k to another, and there's no such thing as ';a 401k outside of the job';



The money needs to be moved into a ';rollover IRA';. This is an Individual Retirement Account that accepts money that's rolled over from a 401k plan.



Once you accept the new job, you can either put new money into their 401k plan, or open up a Roth IRA, or both.



Caution: If you take a check for the 401k, instead of moving the money directly from the 401k to the IRA, then you will have some serious tax issues (the IRS doesn't want you seeing the money until you retire.)
Talk to your plan administrator--they will explain all your options. A 401k is a form of deferred compensation therefore you can not open your own account outside of your job. You can also roll a 401k into a traditional IRA(not a Roth IRA) instead of moving it to a new job. You may wish to do that because you will have a wider range of investment choices in an IRA than a 401k.
I would roll it over to an IRA.

Most likely, the firm that handles it for you will offer more investment options than your employer's plan.

This is a personal choice..... you may do just as well rolling it over to new employer's plan