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Should I leave my old 401(k) where it is . . .

Probably not. The great advantage to you of rolling it over into an IRA is that you can pick the management of the IRA (by buying a mutual fund) or manage it yourself (which I don't recommend). If you don't take it from the previous employer's 401k at your first opportunity, you may not have another chance. Depends on the employer's rules which, even if they are sufficiently flexible now, could change. To avoid withholding on the distribution of your funds from the 401k, you need to have a trustee-to-trustee transfer -- that is, have the 401k administrator make your roll-over check payable to the trustee of an IRA you have set up just for this purpose. Make sure it's empty prior to that roll-over and that you don't put any other money in that particular account IF you want to preserve the capability to put in some future employer's 401k. If you mix any other funds into the IRA that receives the 401k, then they are indeed stuck in that IRA. (The only exception MAY be that you could roll-over the funds from some other 401k from some future employer into that same IRA without "contaminating" it.) You can open a second IRA for your current contributions. Having two IRA's makes it worth your while to find a trustee who will hold them for you at minimal or zero custodial fee.

Chips, whose 401k administrator indexed the investments and actually did as well as the S&P 500 for fifteen years
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