What should I do with my old 401(k) when I change jobs?

You have four choices, and cashing out is almost always the worst. First, leave it in the old plan if the funds are good and fees are low — though small balances under $7,000 may be force-rolled out. Second, roll it into your new employer's 401(k) to consolidate. Third, roll it into an IRA for the widest investment menu and often lower costs. Fourth, cash out — but you'll owe income tax plus a 10% penalty under 59½, and you'll torch decades of compounding. For rollovers, always use a direct trustee-to-trustee transfer so no taxes are withheld and you avoid the 60-day deadline. Keep the Rule of 55 in mind: leaving money in your most recent employer's plan can let you tap it penalty-free at 55. Sort it out at wealthserene.com/for/job-change.