Basically if you have a 401(k) or 403(b) plan and leave the company you are contributing to the plan through, you usually have three options.
- Cash it out and pay penalties and taxes (don't do it).
- Stop contributing, but leave it alone (some 401(k)s may not allow this)
- Roll it into a rollover (traditional) IRA and as of 2008, into a rollover (Roth) IRA
There are other factors to consider when making this decision- but direct to Roth rollovers and thinking about access before 59 1/2 are good issues to be aware of.