You won’t be able to make contributions anymore, but this is an option. This is acceptable as a temporary solution while you look for a new job or research where to open your rollover IRA. But it’s not recommended for the long term, because the company may change their investment options over time, and it won’t be easy to ask questions or make changes if you’re no longer working there. If your account balance is less than $5,000, the company may not allow you to leave your money in their plan at all.
Cash out. WARNING! If you take a “lump-sum distribution” instead of rolling your retirement savings account over to an IRA or a new employer’s plan, you will have to pay income taxes on the money. You will also pay a 10% early withdrawal penalty if you’re under age 59 ½. Not only do you lose money, but you lose valuable time in building savings, and may never catch up.