Keep 401(k) Where it is

You might not have to do anything with your 401(k). If you qualify, you may just leave it where it is, even if you start a new 401(k) with another employer. Still, your plan administrator will probably require you to sign a form or otherwise state your intention in writing, to avoid an automatic distribution.

Because it will likely cost your former employer to maintain your account, your plan administrator probably won't offer this option, unless you qualify with the minimum balance requirement of $5,000 in properties or cash. For some plans, it's only $3,500. If you don't qualify, you will have to choose one of the other options.

If you chose this option, it is unlikely that your former employer will continue to contribute matching amounts to your 401(k), depending on company policy or contractual arrangements with you. For that matter, you may not even be entitled to the amounts the company has already matched, if you don't meet the minimum eligibility (vesting) requirements for time on the job.

However, you may continue to contribute on your own, up to the maximum, annual amount allowed by the IRS. You'll also have the option of changing your investments. Changing your investments might be contingent on your former employer's "open enrollment" periods, but they'll send you enrollment notices for as long as you're still in their plan. (If they don't, contact the HR department.) If your properties pay dividends or other earnings, they will continue to do so, but only if market conditions are suitable. Market losses might also start or continue, and your investments might drop in value.

When leaving your job, you've probably got a heck of a lot on your mind. If you are satisfied with your current 401(k) plan, you may want to choose this option just to buy time, until you figure out which option is best. You may choose one of the other options down the road.

If your 401(k) is starting to lose money or you're otherwise unhappy with the plan, one of the next two options might be more attractive.

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