When you leave your job, you can either leave the money you've contributed to the 401(k) with the company, or you can ask to have it transferred to an IRA with an IRA rollover. If you choose to transfer it, be sure to specify that you want a "direct IRA rollover." With a direct rollover, you won't be charged early withdrawal fees. Make sure you get a written explanation of your IRA rollover for tax purposes. Even though your rollover doesn't count as income, you must report it on your taxes.

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