Generally, I am not a fan of leaving assets with a former employer. There are a few circumstances when leaving some cash in a former employer’s 401k may be the right thing to do. Here is one instance:

If you are between ages 55- 59 and may need some cash, you would not want to rollover your full 401k.

Here is why: at age 55 or older, many 401k plans allow for cash withdrawals without the 10% early withdrawal penalty. If you are in transition – you may need to keep this option available to you.

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