It’s quite possible you will change jobs at some point. When you do, what will happen to your 401(k)?

You could simply cash it out, but if you’re younger than 59 ½, you’ll owe taxes, and probably a 10% penalty, too. And just as important, you’ll be depleting money that should go to your retirement.

You might be able to keep your 401(k) with your old employer or move the money to your new employer’s plan. In either case, you won’t face an immediate tax hit, so your decision may depend on what sort of investment options are in your old and new plans.

Finally, you could move your 401(k) funds into an IRA. Your money can continue to grow tax-deferred, and you’ll have a wide array of investment choices.

You’ll want to review all your choices and consult with your tax professional before making any decisions. Do whatever you can to preserve, and hopefully grow, your 401(k) assets. You’ll need these resources to help fund the retirement lifestyle you want – and deserve.