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Gone are the days that someone joins a company out of college, grows with the same employer throughout their career, and then retires off into the sunset with a nice pension. Now, people move from job to job more frequently, and more often than not, they will have to rely on their own retirement savings from 401ks and IRAs to cover their retirement cash needs.

So what should you do with your old 401k once you’ve left your employer? Before you do anything, you should know your options to avoid mistakes that could result in higher taxes, penalties and fees.

Here are 3 important options and 3 factors to consider when leaving a company where you have a 401k account:

1. Roll your 401k to a IRA (Individual Retirement Account) account:

This is usually the default option we recommend to our clients for several reasons. Many 401k plans have limited fund options, and those funds, often times, have higher management fees than IRAs. IRAs can be opened at many different custodians (ex. Charles Schwab Charles Schwab. Fidelity, Vanguard, etc.) and have virtually unlimited investment options.

An investor can simplify with low cost index funds, invest in active mutual funds and exchange traded funds, or even pick individual stocks for their portfolio. This flexibility is the primary reason to roll your 401k to an IRA account.

2. Roll your old 401k to your new 401k :

If you’re going to remain employed and you’re happy with your new employer’s 401k plan and options, it may make sense to roll your old 401k into your new plan. Consult with your new HR department to confirm that rollovers are permitted.

Moving the funds to your new 401k will allow you to keep all of your retirement assets in one account and simplify your portfolio. If you’re older than 70 and still working, then there are additional advantages. (I discuss this later.)

3. Keep your 401k with your former employer:

If your former employer has a terrific 401k plan with lots of investment options, you may consider leaving it where it is. It’s important to consider any administrative fees that your former employer may pass on to its employees because they eat into your overall return.

In some states, 401k plans offer better creditor protection than IRAs, so if that’s a concern, it may make sense to keep the funds where they are.

You should also consider these important points before making your rollover decision:

4. If you’re over 70 and still working:

All individuals are required to begin taking required minimum distributions (RMDs) from their traditional IRA accounts when they turn 70 . This terrific RMD Guide explains what you need to know about required minimum distributions (RMDs).

If you’re not a 5% owner in a company and still working at 70 , then your 401k is not subject to these RMD rules as long as you continue to work.