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Greetings, Barking Pumpkin, and welcome. You asked:

<<I'm getting ready to leave my current employer, and I'm wondering what to do with the money I have accumulated in my 401k.

Should I roll it over into my next employer's 401k, or am I better off putting it into an IRA? What's the Foolish thing to do?>>

Around Fooldom we tend to prefer having our money in an IRA where we have far greater freedom to control the investments. Most company 401k plans offer limited investment options almost always in mutual funds. With an IRA the choice is virtually unlimited.

In a 401k plan, you often have an ability to borrow (not that we really recommend you do so, because we don't). You do not have that ability in an IRA.

In a 401k plan, if you leave your job in the year you attain age 55 with money in your employer's plan, you may take distributions in any amount free of any early withdrawal penalty. In an IRA you must wait until age 59 1/2 to do so or use "substantially equal periodic payments," which may or may not provide needed income.

So, look at your goals and objectives. Then decide.

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