* Do You Need to Do a Rollover at All? You don't have to do a rollover. You can leave your money in your current employer's plan. If your present defined-contribution plan offers several low-cost options that are performing well, you may not have to make a move.


* Have You Vetted a New Plan or IRA? No matter which financial services firm you choose, they will want to sell you products that will have management expenses and possibly commissions. You can, of course, set up a "self-directed" IRA that allows you to trade securities, but you have to ask yourself if that's a good idea. Most people don't do too well with individual trades after transaction costs are deducted.


* Should You Cash Out? This is a tremendous temptation that far too many retirement savers take. If you cash out before age 59 1/2, you'll be subject to a 10-percent federal early-withdrawal penalty plus income taxes, so Uncle Sam could be taking up to 40 percent of your withdrawal. Employers often withhold 20 percent of the cash-out just to pay taxes. So there's no way you can come out ahead on these "lump-sum distributions."


* Are You Choosing the Best Rollover Strategy? Generally, the worst move is to go from a low-cost, diversified 401(k) to a high-fee, commissioned IRA. Keep in mind that you are trying to preserve your nest egg while seeking income and growth to beat inflation.