Things to consider before rolling over an IRA
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"There are very few advantages to leaving it in a company plan," Slott says. "That's probably the worst place because you're just so restricted and subject to all kinds of arcane plan rules and you may not be able to get to your money when you want it."

A rollover lets you have more control, flexibility and tons of investment options.

If you decide a rollover is right for you, make sure to do a trustee-to-trustee transfer, where the money goes directly from your retirement plan to an IRA without your touching the money in between, says Slott.

There are many benefits to this type of transfer. To name two, you avoid the 60-day rule and 20 percent withholding tax rule.

If you get your hands on the money, the IRS allows you 60 days to move it into an IRA without losing its tax-favorable status. However, IRS rules stipulate that your former plan administrator is obligated to withhold 20 percent in taxes. That means that you must come up with the difference with your own funds before the 60 days are up.

"If you miss the 60-day window, or don't make up the withheld amount, you will be taxed on the entire amount or the shortfall, and if you're under 59½, you will pay a 10 percent early distribution penalty," says author Nora Peterson. "It's important to remember that the early withdrawal is taxable as regular income in the year it is withdrawn. And the 10 percent penalty is in addition to those taxes."

A trustee-to-trustee transfer prevents all this from happening, since 100 percent of your funds will move directly from your former plan to your new IRA rollover account.

This method also enables you to avoid the one-rollover-every-12-months rule. The IRS does not limit the number of times you do a "trustee-to-trustee" or direct transfer. But if you choose to receive the proceeds in your hot little hands, the IRS limits you to one rollover every 12 months.

Warning: Just because you instruct your plan to do the direct transfer, that doesn't mean things can't go wrong. Good follow-up skills are critical.

"Many times (the money) goes to some other account that's not an IRA and people don't realize it until the next year when they're doing taxes and their accountant says that they took a taxable distribution," says Slott.

Have a plan for your investments
Before you do the rollover, you need to decide which firm you plan to do future business with and become acquainted with its investment options.

Cost is the probably the biggest factor in deciding where to invest your money. Carefully consider all of the administrative, custodial and ongoing management fees associated with the firm and its products and services before you roll over. Look for funds with low annual expense ratios.

Kitces says some accounts have a $20 to $30 annual fee for maintaining the account. However, most companies will waive that fee once you reach a certain asset level.

Also, be aware of closing fees, Kitces says. "If there was a 403(b) that might have held an annuity, clarify whether there are any surrender charges associated with closing the annuity."