Changed jobs? Consolidating retirement accounts? Restructuring your retirement plan? You might need to do a 401(k) rollover.

Whatever the reason, once you know that you need to initiate a rollover, you’ll need to decide where to move the money in your 401(k).

You have a few options, each of which have their own benefits and drawbacks. Read on to find which is best for you.

What is a 401(K) rollover, and when should you do one?

If you opened a 401(k) account with a former employer, you’ll need to decide where you want to keep your savings when you leave the company or start a new job. Usually, you will have up to four options available to choose from.

1. Keep your existing 401(k) with your former employer.

However, only some employers allow this for former employees, and you will also no longer be able to enjoy the benefit of having them match your contributions. In some cases, leaving your 401(k) open at a former employer also might leave you vulnerable to extra taxes.

2. Consolidate your 401(k) accounts, if your new employer offers a 401(k) plan.

You’ll have to check what types of 401(k)s each employer offers to see if this option is a possibility.

3. Cash out your 401(k).

This is technically an option, but because of the heavy penalties you’ll incur if you cash out your 401(k) before 59 ½ years old, you should really only consider this option in serious financial emergencies.

4. Move the money in your 401(k) into an IRA.

This is the most common rollover option.

Assuming you've clicked on this article because you want to open an IRA, let's explore option 4.

What you need to know about 401(k)-to-IRA rollovers

You’ll be able to avoid having to pay any immediate taxes (although you will need to pay taxes eventually) and also typically get more control over where your money is being invested.

An IRA is a practical retirement savings vehicle that is used by millions of American households. Though IRAs don’t usually offer the same matching advantages of some 401(k) because they’re not connected to an employer, they are a great option for people who are switching between employers, deciding to start their own business or become self-employed, or are otherwise changing their general career path.

An IRA offers other advantages as well, such as the ability to choose where your funds are invested (usually a mutual fund but there are many you can choose from), estate planning advantages, simplified rules, and more. However, simply deciding that you want to establish an IRA will not be enough—you’ll also need to decide where you want your IRA to be managed, whether that is through your bank, a brokerage firm, a robo-advisor, or anyone else.

Your bank—or any bank, really

If you are considering a 401(k)-to-IRA rollover, one of the first places you might want to consider is the bank you already use for your checking and savings accounts. Most of the big banks—like Bank of America, Chase, Wells Fargo, and so on—as well as smaller banks and credit unions offer IRAs that you can use in your rollover.

Because you have an existing relationship with your bank, executing the rollover is usually pretty painless. You might even be able to avoid certain fees and paperwork if you use a bank at which you’re already an established customer.

In some cases, however, opening an IRA at a bank isn’t always the best option. Financial advisers at large banks, who are available to help you not only with your rollover but also with the investment of your IRA funds afterwards, can come at a premium. They also aren’t always the most beginner-friendly when it comes to retirement planning and investing.

If this is the case for you, you might want to consider one of the two other options: Brokerage firms, or robo-advisors (a.k.a. personal finance apps that offer IRAs).

A brokerage firm

Among other things, brokerage firms are third-party IRA providers that focus on holding and investing in securities for their clients, including stocks, bonds, and more.

Some of the most popular brokerage firms in the U.S. include Fidelity, Charles Schwab, and TD Ameritrade. Like banks, these firms offer 401(k)-to-IRA rollover functions for their clients, as well as access to financial advisors, which usually comes at a separate cost.

One of the best reasons to choose a brokerage firm for your rollover is that these firms typically have a long-term view that is very conducive to retirement savings. Rather than focusing on day-to-day transactions, as you might find at a commercial bank, these firms focus heavily on making the type of investments that are most likely to deliver their clients the best long-term financial outcomes.

On average, brokerage firms also yield a slightly higher return on investment than you’d find at a big bank. However, there are often fees associated with brokerage firms, which is why people looking for a simpler option with a lower barrier to entry might choose to look elsewhere.

A robo-advisor

With the rise of financial tech platforms within the last two decades, the financial space has seen a shift in interest from active investment strategies (picking individual investments by hand) to passive investment strategies (diversifying and investing in indexes). As a result, robo-advisors—investment “advisors” that are completely automated—have become increasingly popular across the country and around the world.

Today, some of the most popular robo-advisors include Wealthfront, Betterment, and SoFi, but there’s many more to choose from. These platforms are extremely popular because they offer a user-friendly and relatively hands-off experience, which is a great way to start and manage your retirement investments, especially if you’re a personal finance beginner.

While robo-advisors lack the personal touch of an in-person financial advisor, they also lack the financial advisor fees.

Consider your options, but don’t overthink it

When you’re rolling over your 401(k), the most important thing is to get it rolled over, somewhere, ASAP. Generally speaking, the three options are very similar to one another.

However, their minor differences—fees, access to expert advice, structure, investment options, etc.—are still important enough for you to keep in mind, especially because building your retirement savings will take place over a long period of time. Remember, saving for retirement is a marathon, not a sprint, but you have to start the marathon somewhere!