The moment you change employment, you should do something about you 401k account in a matter of 60 days, else you will be fined heavily. If you left your previous job without the intention of looking for another, it is best to rollover your 401k account into a private retirement savings account.
There is a way to avoid fines and still rollover your 401k account into an IRA, and that is through a mediating brokerage firm. If leaving your job comes into mind, it would be wise to look for a private broker right away. You can choose among many alternatives like through the internet, banks, or other financial institutions present in your region.
Inquire of their services, the type of IRA they offer, along with their maintenance fees and return rates. Choose among the firms that can give you the best deal for your money. After that, you can immediately jump into processing your 401k rollover.
A 401(k) rollover to an IRA is pretty simple if you let the brokers handle the transaction. You should never withdraw the money and then reinvest it at a different financial firm. The IRS will see this as "early withdrawal" of retirement savings and you will be hit with penalties as well as steep taxes on this money. This can all be avoided by letting the new financial institution roll over your 401(k) to an IRA through their company.
When you have decided which company you choose to manage your money, simply request the paperwork to have your old 401(k) money rolled over into your new IRA plan with them. They will process all the paperwork, for free, once you have signed the authorization allowing them to do so.
This is the general practice in the financial market. You can be assured that they will be prompt in doing this service. It is good for you because you can avoid taxes and fees, even penalties imposed by your previous employer for leaving your money to them after you discontinued your employment.
Now, you should look into a 401k account for more information. You can find more tips and suggestions at 401k rollover school.
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