My instinct was to convert my 401K to an IRA for two reasons : Separate from the Company and Have unlimited investment choices. I converted to IRA when I retired. Now I find the (basically same) funds have significantly larger fees for managing the funds. Since I don't trust my knowledge to invest in individual stocks or bonds globally, I rely on funds. Now I regret not having the reduced fees associated with employer sponsored 401K funds. You can't go back to 401K once you switch... so do the research!