<prompt> Human: I grew up poor and I learned that 401ks exist at age 35, the first time I had a job that paid more than 40k. When I left that job for another job, I got a letter about how to cash out my 401k. So I did that. Then a friend told me I should have rolled it over to a Roth IRA and Im an idiot for not doing something so trivial and obvious. Age 36, I learned that a Roth IRA exists. I figure it doesnt matter. It wasnt much money.My wife has a new career too, and she did have a 401k through her previous job, which she left a couple years ago. This week, she got a letter telling her she needs to cash that out. I told her that my friend said Roth IRAs are the way to go. Theres a phone number on the letter to call for help, so she called it to ask what she should do. The person told her how to cash it out. We have no idea what to do, but if Roth IRA is the thing to do, I dont want her to screw up. Right now shes planning to take the money and buy a couch. Our combined income is something like 60k. I feel like we should be making proactive decisions, but neither of us knows a thing about money, and honestly were both irrationally terrified of it. What should she do about this 401k thing?  <response>: I think uKahnarble gave a great response. Zooming out a bit, Id additionally offer this: The basic way retirement savings accounts mainly both types of 401k and IRA work is to let your money grow over a relatively long period of time. You dont save up by dumping a few big piles of money into it. You generate savings by consistently putting in manageable chunks. Dont cash out! The right answer is to roll it over into a new 401kIRA, and truthfully, it will be pretty easy to figure out what.If it were me, I would call up Vanguard or another popular firm that does 401ksIRAs and just say: My wife has a 401k through a previous job and wed like to roll it over. Can you explain our best options for doing that and what the tax implications are? You dont have to make any snap decisions. Just take a few basic notes. Come back here if anything is super confusing. As someone who once recently knew nothing about any of this, I totally understand what youre feeling. But the truth is, its really not THAT complicated, and you will be able to make a good, healthy decision without much hassle. Just take a deep breath and embrace your new saving future! 