If your new company offers a 401k, you can roll over your old balance into it. Think of it like moving your favorite playlist from your old phone to your new one. All your songs (and money) come along seamlessly.
This is great because you keep all your retirement savings in one place. You can keep contributing and maybe even snag a company match. Plus, you avoid the temptation to spend it on a shiny used car (more on that below).
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Why You Should—and Should Not—Max Out Your 401(k)
Just make sure you do a direct rollover—where the money goes straight from one account to the other. If they send you a check first, you have 60 days to deposit it, or the IRS will treat it as a withdrawal and tax you like crazy. Yes, it’s as stressful as finding a parking ticket on your windshield.
