How to Roll Over A 401(k) Into an IRA

By Althea Chang, staff writer at MainStreet.com

Have you recently been laid off, or left money in 401(k) plans at previous employers? You can move your retirement funds to a rollover IRA, a tax-advantaged individual retirement account you can open yourself, even without an employer.

Keep It Growing

It may be tempting, but the last thing you want to do is cash out your 401(k), even if you've recently lost your job. You'd be subject to federal, state and local income taxes on the amount plus a 10% early withdrawal penalty. And given the stock market downturn, you'll likely be taking a loss as well. ...