The simple answer is to consider consolidating your retirement accounts with a rollover IRA when you change jobs. This will not only simplify your overall financial situation, but also provide you more investment choices. There is no tax due or withdrawal penalties when you transfer assets in old 401(k) to a rollover IRA.

However, besides rollover your old 401(k) to IRA you may evaluate across all options available, which may include keeping assets in your former employer’s plan; rolling over the assets to a new employers’ plan. Taking a cash distribution will trigger taxes and possible early withdrawal penalties. Therefore, before making a decision, you should understand pros and cons of available options and that factors that may affect your decision include but not limited to investment-related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment and other factors that may apply to specific individual circumstances.