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When You Change Jobs   When you leave your employer, you will need to make decisions about your eligible retirement plan savings — perhaps the largest investment you've ever managed. Most investors have four options for their 401(k), 403(b) or other employer-sponsored retirement plan when they leave their employer.    Related Link   Open a Rollover IRA   Option Possible Benefit Possible Disadvantage Option 1: Stay invested in your current plan •   Avoids current taxes •   Money remains invested tax-deferred Investment choices are limited to those in the plan Option 2: Move the money to a new employer's plan •   Avoids current taxes •   Money remains invested tax-deferred •   Consolidates multiple plans Investment choices are limited to those in the plan Option 3: Open a Rollover IRA •   Avoids current taxes •   Money remains invested tax-deferred •   Consolidates retirement accounts •   Broad range of investment choices Loans are not available Option 4: Take the money out of the account in cash •   Can invest in anything, although generally money will no longer maintain tax-deferred status •   Immediate access to cash remaining after withholding and penalty (if applicable) •   Federal income tax due on entire amount •   10% penalty if under 59 ½ •   Mandatory 20% withholding for federal income tax   Next Steps   Learn About Rollover IRAs     Open a Rollover IRA     Contact a Rollover Specialist - Call 800-544-5650 Mon.- Fri. 7 am-1 am ET, Sat, 8 am-10 pm ET, Sun, 8 am- midnight ET     Contribute to an IRA Automatically     Copyright 1998–2009 FMR LLC All rights reserved. Terms of Use  Privacy  Security  Site Map