Read time: 5 to 6 minutes
Switching jobs? It happens a lot. In fact, the average worker changes employers about once every 4 years.1 If you’re starting a new job, consider this important but sometimes overlooked question: What should you do with the money in your former employer’s retirement plan? Let’s go over the options you may have and some pros and cons of each.

Stay in your plan
If you have a certain amount of money in your account—typically at least $5,000 or $7,000, depending on plan rules—you can usually leave your money in your former employer's plan at Vanguard. If you're happy with your plan, you may want to stay.
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Looking for more help?
Your plan may offer advice and money management services.
Depending on the service, you can get a little guidance or ongoing professional money management of your retirement plan investments. Keeping your money in your plan could allow you to take advantage of this powerful benefit.
Roll over to an IRA
An IRA is a personal, tax-deferred account that gives investors an easy way to save for retirement. You can move your money to an IRA, which offers a wide assortment of investment options.4
If you're interested in this option, consider a Vanguard IRA®. Why? The average Vanguard fund expense ratio is 84% less than the industry average.5 Over time, that can mean more money in your account—whether you leave your money in the plan or roll it over to a Vanguard IRA.
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Questions about IRAs?
Call us at 888-387-5534.
You can consider a traditional or Roth IRA, depending on your situation and when you want your tax break—now or later. You can also explore whether a Roth conversion might make sense for you.
Helpful hint
If you invest in a company stock fund in your plan, please consult a tax advisor for more information on the tax treatment of company stock.
Roll over to a new employer's plan
If your new employer's plan accepts rollovers, you can bring the balance over from your old employer's plan.
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Cash out your savings
You can cash out your entire retirement plan balance when you leave an employer. But that could have a major impact on your savings—and your retirement readiness. And you could owe a lot of money to the IRS. Add up all the taxes and penalties, and it could mean years of progress wiped out in a single day. So carefully consider this option before you act.
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