There are a couple of different scenarios in which you may consider moving your retirement funds out of your current account.  Aside from retirement, job changes and job loss are two of the most common.  If you are moving funds out of your account due to retirement, you will have a number of other options that younger investors do not have available to them.

The first option you will typically have is to leave the funds in the original plan.  Many do not realize that this is often an option, though depending on the circumstances of the move, it may not be altogether appealing.

The next option that you have is to transfer the plan into your new employer’s pension plan.  These plan to plan transfers are generally quite straightforward.  This allows you to maintain the plan in a similar vehicle as you are used to and can ensure that the learning curve is quite small.

Of increasingly popularity is to transfer your 401k to an IRA or Roth IRA account.  Many investors are finding that this sort of transfer has many favorable characteristics.  Not only are there inherent tax advantages with this sort of transfer, but the range of investment possibilities increases inside of an IRA account.

If you are approaching a job change and are concerned about the best way to approach the different 401k rollover options, take the time to learn the different methods of transfer you have available to you.  It may not be a bad idea to talk to an experienced financial planner to help guide you in the right direction.