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My suggestion for a Fool would be to roll the sum, trustee-to-trustee into a traditional IRA. This can be done without tax consequences....

The above and all that followed is sound advice. (I didn't want to recopy the whole post.) But there is one thing you should be aware of. If you tranfer the 401K from employer A to a Rollover IRA you cannot transfer it to employer B's (or C's or D's) 401K in the future. You can, as was mentioned in the earlier post, do a direct transfer from Company A's into Company B's. This is only important if employer B has a particuarly good plan or if they offer access to funds you could not otherwise get access to. For example, I worked for a large software firm (Company X) which had "Company X Stock Fund" in its 401K. This was a fund managed by Fidelity only for employees of Company X with the 401K. Having access to that stock fund is a good deal as far as I am concerned, so if I were going to work for Company X from another company, I would want to do a direct transfer to their 401K so I could invest in that fund. (Similarly, when I left Company X, I left the 401K intact because I wanted to continue to own Company X Stock Fund even though I cannot invest any new money in it.)

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