There is often pressure to rollover a company 401(k) into an IRA as soon as possible after your departure from an employer. That may not always be prudent, though it depends. A few reasons to consider keeping them at your old employer:
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Stable Value Fund availability: These are similar to CD’s and they can only be offered in a qualified company retirement plan, not in IRA’s.
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Low cost: Large company plans often can get access to institutional class funds or very low cost, high quality managers
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Company Stock: If the individual has worked at the company for a long time and owns low basis company stock, there may be an opportunity to remove that stock and only pay capital gains on the growth rather than ordinary income.
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Administration/trading costs: There are typically none for a 401(k)
That said, there are many good reasons to move the 401(k) into an IRA.
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More (and many times better) investment choices
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Consolidation: It’s easier to allocate one larger account than several small accounts at different places
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Access to CDs and ETFs: These are great low cost investment options that may provide more diversification
So what’s the right answer? There isn’t a “one size fits all” answer. Each person’s situation is unique and should be reviewed before making any final decision.