What To Do With Your Old 401(k)?

Do not roll it over into the 401(k) of your new employer. That's usually the best advice for the vast majority of people. Unless...

...you want your heirs to have worse tax treatment after you die

...or you prefer to have a very limited selection of investments available

...or you want no financial advisor to help you

...or, if you're a do-it-yourselfer, you'd rather have mediocre customer service instead of the excellent service provided by Schwab, Fidelity, TD Ameritrade, etc.

If it's somehow all about low-cost, the 401(k) might make sense. Except using exchange-traded funds at Fidelity or Schwab almost certainly eclipses that in terms of cost-savings, and it absolutely eclipses your 401(k) in terms of investment selection, even if you are limited to just some ETFs.

Now, if you think you'll ever need to borrow against your retirement plan assets, then DO combine your old 401(k) plans into your current one. But then take a serious look at your budget and figure out why you needed to borrow from your 401(k) in the first place. This is a huge red flag. Try not to go there.