If you are changing employers, you’ll eventually need to consider the retirement account that resides with your former company. Since the consequences of your decision can have a significant impact on your tax situation and retirement planning, you may want to consult a professional. Generally, you have five options:
Rollover direct to an IRA account - This option gives you greater control and more choices.
Move to your new employer’s plan - If your new plan accepts retirement assets from previous plan(s), you may be able to rollover your existing retirement.
Keep your money in your former employer’s plan - When leaving your job you may be given the option of leaving your money in the company plan if your retirement balance is greater than $5,000. This may be the easiest course of action to take, but you will not be able to make any additional contributions.
Receive a cash distribution - For many individuals leaving a job the thought of receiving a lump-sum distribution from their employer-sponsored retirement plan may be very appealing. However, receiving a cash distribution can have adverse tax consequences.
Convert to a Roth IRA - The final option is to convert your assets directly into a Roth IRA. Whereas distributions from a Traditional or Rollover IRA are taxable when distributed, a Roth IRA will allow you to take qualified distributions tax free. For a Roth IRA distribution to be qualified, you have to be age 59½ or older, and the assets must be in the account for a minimum of five tax years.
Note, this is just a quick overview of your choices, and no individual advice is intended here. If you want more information, I recommend you to the attached article written by a trusted business network partner.