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My first company just discovered that the $2800 I had in their 401(k) is below their threshhold and unceremoniously sent me a check for the balance minus the penalty. In the attached letter they told me I can rip it up and have the money transferred intact to an IRA or another 401(k).

So I have a few options since I'm not going to just blow the check on remodeling my kitchen:

a. Move the money over to my current 401(k) which is pretty good and has 12 funds of all different types from which to choose.

b. Rollover to an IRA in which case I can choose anything I want but I'd have to put a little more effort into it (not that I'm unwilling).

c. Cash in the check and invest it in stocks, perhaps making up the penalty and taxes. Gives me the most freedom, obviously, but also perhaps is the most risky. I'm not extremely well-paid, however, and have never had a lump like that to invest so it involves new and exciting possibilities.

What should I do?

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