The New York Times recently wrote an article on what to do with your retirement plan (i.e. your 401k) if you change jobs. But they didn't really give any advice. The kind of played it in the middle-of-the-road, afraid to take a stand one way or the other. Yeah, they did say to not cash out the funds, but everyone already knows that's a terrible idea, right?
Anyway, the best advice IMO was found in the comments. For instance, here's a gem that sums it up quite nicely:
Most employer sponsored plans are terrible. Roll over to an IRA at Vanguard. Why pay unnecessary fees and expenses and be stuck with limited and often lousy investment options?
And a similar one:
Do you know the total fees in % that you are paying in the old plan? Compare them to what you would pay in a Vanguard Index fund. Most likely, Vanguard charges less, unless your old employer is very generous and is absorbing most or all of the account level fees.
And another (after recommending rolling over to an IRA):
Once you rollover your assets to an IRA you gain access to thousands of investment choices without trading restrictions. Furthermore, you can convert a part or all of your IRA account to a Roth IRA account. This can provide additional tax and estate planning advantages.
I have dealt with this issue five times in my lifetime -- one for my wife and four for me (and I recently completed one of those since I just changed jobs in August). I have done the exact same thing every single time and have never been sorry I did it. Here's what I've done and what I recommend for others:
Roll the 401k into a rollover IRA at Vanguard and invest it in index funds.
Doing this you'll get all the investment choices you'll ever need (though you really only need a handful) at the lowest costs (which help you get higher returns) you'll see anywhere.
Of course a one-sentence recommendation doesn't make for great articles, so I can see why the NY Times added the other fluff to fill the whole page. :)