One of the things that many experts disagree with is whether participants should keep their account balance within their former employer’s 401(k) plan or roll it over to an IRA. Obviously, cashing it out is never a good option.
There are many financial experts that will tell you that former employees are better off keeping their money in the 401(k) plan because of the lower cost of investments because of the size of the assets in the 401(k) plan. My two cents is that in an ideal world, that would make sense. However, we don’t live in an ideal world. Former employees may not receive important notices and are less likely. To get important investment education that current employees would get. Also, knowing how things work in plan administration, I’d want to take my retirement money with me if I left a job.