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You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth, and outrageous generosity. So here's the deal, can we get this question a lot and I wanted to address it because a lot of people are going through this right now.

They're leaving jobs.

We've seen a huge migration of just people moving around.

What do I do with my 401k?

What do I do that I left behind?

Yes.

Oh, this is a big one.

It's a big one and it's important one that has a lot of zeros on the end.

So I want to walk people through

the thought process when it comes to rolling over the 401k. So of course you have a bunch of

options. Number one is cash out your 401k, which is a terrible idea because you're going to pay taxes and penalties

if you're not of retirement age.

The other option is do nothing and leave the money in your old 401k.

Also a terrible idea, probably in second place in the terrible idea list.

The other two options are you can roll over the money into your new employer's plan, so if you have

an old 401k, you got a new job. You can roll it directly into the new employer's 401k.

And then finally, the last and probably my favorite option is you can do a rollover into an IRA, which is outside of an employer. And so I like that one the best

can because it gives you the most control over your investing options. The IRA basically

has unlimited options, whereas your

401k has a fewer more select options. All right, so let's play this out.

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