I have less than $400 in a 401K from a previous job. Should I cash out or rollover?

Question

I have less than $400 in a 401K from a previous job. Should I cash out or rollover?

Answer 1

If you cash it out you'll get about $260 after taxes. The tax is about 35%

Answer 2

It is always best to roll over, since this is how you avoid taxes and penalties and how you compound your investment over time.  Since it is a small amount, the challenge is how to avoid fees.  The best way to do this is to put it into another account such as the 401(k) at your current employer or possibly an IRA account you have.