401K, what do I do with it? Confused...

[Mokie]

I am not knowledgeable at all when it comes to investing..I am a single mother 45, and was laid off in January. I am back in school and on unemployment, so have very limited income, but I can survive while I'm finishing retraining. I worked at my last company 4 years and my most recent statement from Masterplan shows I have almost $7000.00, although it also shows a loss of $267 for the last quarter. I have been trying to read online if I need to do something with this. I'm very confused. IRA, Roth IRA, Conduit IRA, or even leaving it where it is now? I haven't received any notice that I have to move it, but I read somewhere online that I only have 60 days after termination to make a decision. Well, I'm obviously past 60 days, so now what?

Please, I could use any advice, information, but make it as uncomplicated as possible. Thanks everyone for your help!

[humandraydel]

In most cases you do not have to roll it over to an IRA. Sometimes, a 401k provider will make you, but usually only if you have a low balance (like, below $1k).

Rolling it over typically gives you more options and more control over your investment. If you DO roll it over, make sure to have the check made out to the company you are rolling it over to (Fidelity, for example). If you have the check made out to yourself, the 401k provider is legally required to withhold taxes.

[disneysteve]

How is the money currently invested in the 401k? Are you happy with the investment and the expenses? If you don't know the answers to those questions, you need to find out. If you do know the answers and you are happy with what you've got, you can leave it there. If the expenses are high or performance is sub-par, roll it over to an IRA where you can have much better control.