One of your most flexible 401k rollover options is moving your full account value into a rollover IRA. An IRA gives you greater freedom in choosing investments than a 401k rollover option.
It's important that you learn every angle of your rollover 401k IRA plan and how to work it in your favor. What are the 401k IRA eligibility requirements and vesting schedule? and How do the IRA rollover distribution rules work?
When you select the IRA direct rollover option, your employer may transfer the funds directly by check or wire to the new plan, or you may given a check payable to the new plan that you deliver.
Make sure that your IRA rollover qualifies as a “trustee-to-trustee” transfer. Don’t take personal possession of a check make out to you, or you might be in for an unpleasant tax surprise.
If you request a 403b IRA rollover and don’t specify that you want a direct rollover, many of the same penalties involved in a distribution of funds may occur, largely negating the advantages of a rollover.
The 403b rollovers are reportable events, although they aren’t considered to be taxable events. Unless there’s a compelling reason against it, be sure to choose a direct rollover for your 403b IRA rollover.