Consider 401(k) Rollover

If you retire or change jobs this year, you should consider a rollover of your 401(k) account to an IRA account so that you have more control over your investments. This is the perfect time to reevaluate your goals and structure your new investment portfolio to meet those goals. However, there may be advantages to leaving the money in your former employer's plan. For example, you can avoid a 10% penalty on pre 59 1/2 withdrawals. The penalty doesn't apply to payouts from company plans after you terminate employment if you are age 55 or older in the year you leave. This exemption applies to all future distributions you take from the plan. However, if you rollover the plan balance to an IRA and withdraw from it before 59 1/2, the 10% penalty applies.