Decide what to do with an old 401(k) after comparing every option.

Compare four paths before acting: leave it in the former plan, move it to a new employer plan if allowed, roll it to an IRA, or take a taxable distribution. The right choice for your situation depends on fees, investments, services, withdrawal rules, creditor protection, taxes, and your need for advice.

There is no single best answer. Employer plans may offer lower costs or unique protections, while an IRA may offer broader choices and coordinated advice. Compare the actual features and total costs before deciding. Prior to rolling over any plan assets to an IRA, an individual should carefully consider various factors such as investment options, fees and expenses, services, penalty-free withdrawals, protection from creditors and legal judgments, required minimum distributions, and employer stocks depending on individual needs and circumstances.

A direct rollover generally sends eligible assets to another retirement account without current taxation. An indirect rollover can create withholding, timing, and tax complications, so confirm the receiving account and transfer method first.

Company stock may create special tax and concentration questions, including whether net unrealized appreciation treatment could apply. Review the shares, cost basis, plan rules, and tax consequences before moving the account.