One good reason is so you can have more options on what to invest in since 401K plans are usually limited.
When you leave a job you have 3 options :
1) leave the 401K as is IF the plan allows you to stay ... most do not.
2) take the distribution and pay the taxes + penalty on the withdrawal.
3) roll it to an IRA ... make sure to do a trustee to trustee rollover ... if you touch the money you only have 60 days to make the roll and the employer will withhold at least 20% for federal taxes which will not be able to be rolled thus it is taxable.
I apologize for my stupidity but will I have to manage the IRA? Do I get to pick the investments? Is there a fee to rollover? Where is the best place to rollover?
I just answered that on your other post. Same answer....
You can usually invest your IRA in anything. IRAs are self directed accounts. You can open an IRA almost anywhere like a bank, credit union, broker or mutual fund. You can buy any investment they offer so check around to see what they have. But your money will be locked up until you retire so make sure you won't be needing it. You can take it out early but there is a 10% Early Withdrawal Penalty if you are under 59 1/2.