The average person changes jobs just over 12 times in a lifetime. That’s a lot of moving around, and sometimes things can fall through the cracks: In a recent analysis with the Center for Retirement Research at Boston College, it was estimated there are over 24 million forgotten 401(k) accounts holding $1.35 trillion in assets, and another 2.8 million accounts left behind annually.

While there is not a lot of published data on accounts that might be left behind in the Thrift Savings Plan (TSP), some 200,000 servicemembers transition to civilian life each year.

So, if you’ve left behind an account at an old workplace or simply want to know what to do with your brand new or existing retirement account, here are some tips. A note to Premium and Life members: An extensive review of this topic is available via this recent MOAA webinar (member login required; join or upgrade for access).

You have four main choices:

1. Leave the account where it is with your old employer. Not every employer will allow this, so you’ll need to check with the plan administrator to see if it’s a possibility. The TSP does allow you to keep your account open if you keep a balance of at least $200. One important thing to keep in mind: You won’t be able to make new contributions to your retirement account once you leave your position.
   
   
2. Roll the money into your new employer’s plan. By consolidating accounts, it makes it easier for you to manage your portfolio and see whether you’re diversified and invested in appropriate funds. Make sure you pay attention to whether contributions at your new employer are being defaulted into a particular fund.
   
   
3. Roll your account into an Individual Retirement Account (IRA). Some IRAs have more investment options and lower expenses and fees than 401(k)s. You’ll want to keep the tax treatment the same, only rolling a traditional 40(1k)/TSP balance into a traditional IRA and a Roth 401(k)/TSP account into a Roth IRA. Trying to roll a traditional plan into a Roth IRA is considered a conversion and will leave you with a tax bill.
   
   
4. Cash out. This is by far the least favorable option. If you’re under age 59½, you’ll be taxed on your distribution as if it’s earned income, plus you’ll pay a 10% penalty to the IRS. But more importantly, you’ll be setting your retirement goals that much further back.

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When you’re rolling from one employer plan to another or to an IRA, you’ll want to see if you can do a direct, or trustee-to-trustee, transfer. Otherwise, if the distribution is made out to you, it may have taxes withheld from it; you’ll be responsible for adding those taxes back in and putting it into another retirement account within 60 days, or else it will be treated as a distribution.

Whichever option you choose, you’ll want to act quickly: In some cases, if you don’t do anything, your employer may just send you a check or simply do a “forced transfer” of the balance into an IRA.