Your money will stay invested in the market, which means it remains open to potential market fluctuations. This may benefit you in a couple of different ways: your money stays tax deferred (meaning you won't pay taxes on it until you retire) and your balance may continue to grow over time.

You'll continue to have access to the investments your former employer makes available in the plan. You can move your money around within the plan's investments if you want to and the plan allows.

Since your former employer maintains control of the plan, they can make changes to its investments, features and services. They're required to notify you if they do make any changes that impact your account (so you'd need to keep your contact information updated).

Your money will be invested in the market, which means it's open to potential market fluctuations. Your money stays tax deferred (meaning you won't pay taxes on it until you retire), and since you can keep contributing to your employer plan account, you may see potential earnings on both your original account balance and any money you add over time.

The employer selects the options available for you to choose from in the new plan. Employer plans generally provide a more limited range of investments, but it varies by plan—you'd need to check with the employer.

Some employer plans allow you to borrow money from your account—you'd need to check with the employer. You can't take a loan from a former employer's plan or an IRA, though IRAs may permit some penalty-free early withdrawals for college expenses or buying your first home.

Some employer plans allow you to roll other outside accounts into your plan account—you'll need to check with the employer. Combining (or consolidating) accounts into one spot can help simplify your savings.

Each plan has different rules for when and how you can withdraw your money in retirement. For example, some plans permit you to take periodic cash withdrawals; others don't allow partial withdrawals at all. Some plans let you annuitize part or all of your account to provide guaranteed income; others don't. Consider what method of withdrawing money will best meet your needs and check to see if your employer's plan will accommodate your wishes.

Since you generally contribute pre-tax money to an employer plan account, your money gets taxed when you withdraw it. Employer plans typically withhold 20% of your withdrawal to cover these taxes. If your actual tax bracket is lower, you won't get the difference back until you file your taxes for the year.

An IRA is a retirement savings account that's not provided through an employer. Instead, financial service companies like Principal offer IRAs directly to you.

If you roll a plan account over to an IRA, you can contribute to it like you would an employer plan, and you can generally deduct those contributions from your taxes.

What happens in an IRA rollover? It depends on which company you choose for your IRA.

• If you roll to a Principal IRA, we help you open your account over the phone or online and move your money automatically. Learn more.
• If you roll to an IRA somewhere else, you'll work with that firm to open an account and we'll send you a check to deposit into it.

Your money will be invested in the market, which means it's open to potential market fluctuations. Your money stays tax deferred (meaning you won't pay taxes on it until you retire), and since you can keep contributing to an IRA, you may see potential earnings on both your original account balance and any money you add over time.

With IRAs, you may have access to a wider range of investments because you're not limited to what an employer has selected for their plan's lineup. If your investing needs aren't met by what's available through the plan, an IRA may give you more flexibility.

More investment choice doesn't mean you need to be an investing expert. Most IRA providers, including Principal, will help you choose investments if you're not sure what you want.

IRAs allow you to roll other outside retirement accounts, like 401(k) accounts from other past jobs, into your IRA. Combining (or consolidating) accounts into one spot can help simplify your savings.

IRAs are generally very flexible when it comes to withdrawing your money. Options include:

• Setting up periodic, ongoing payments
• Flexible withdrawals on an as-needed basis
• Annuities or other guaranteed income stream options

Since you generally contribute pre-tax money to an employer plan account, your money gets taxed when you withdraw it. In an IRA, you can elect what percentage of your withdrawal you'd like to withhold to pay your taxes for the year, instead of withholding the standard 20%.

IRAs generally come with access to a financial professional who will guide you on investment options to best suit your needs, goals and risk tolerance.

Depending on what IRA provider you choose, you may receive ongoing guidance on broader financial planning—for example, insurance needs and retirement income planning.

Each plan has different rules for when and how you can withdraw your money in retirement. For example, some plans permit you to take periodic cash withdrawals; others don't allow partial withdrawals at all. Some plans let you annuitize part or all of your account to provide guaranteed income; others don't. Consider what method of withdrawing money will best meet your needs and check to see if your employer's plan will accommodate your wishes.

Employer plans typically provide general education on investing and other financial topics, but most don't provide investment advice or ongoing financial guidance. Check to see what resources your employer's plan provides.

Since you generally contribute pre-tax money to an employer plan account, your money gets taxed when you withdraw it. Employer plans typically withhold 20% of the amount you withdraw to cover these taxes. If your actual tax bracket is lower, you won't get the difference back until you file your taxes for the year.

Since you generally contribute pre-tax money to an employer plan account, your money gets taxed when you withdraw it. Employer plans typically withhold 20% of your account balance to cover these taxes. If your actual tax bracket is lower, you won't get the difference back until you file your taxes for the year.

To avoid paying the 10% early withdrawal penalty, you need to have turned 55 (or older) during the year you left your job.

Since you generally contribute pre-tax money to an employer plan account, your money gets taxed when you withdraw it. Employer plans are required by the IRS to withhold a certain amount of your account balance (typically 20%) to cover federal taxes. Depending on where you live, you may have to pay state taxes as well. And you'll likely pay a 10% penalty for withdrawing your money early, unless you turned 55 (or older) during the year you left your job.