I'm will be turning 64 in a few months and am considering taking early retirement so I can work on some projects I'm interested in and work part-time at my current job. I have a very small 401k--under $25,000--and am not certain what to do with it. I will not need it for day-to-day expenses if I manage my money carefully, but might need access to it for moving expenses, etc. I don't think there's enough in it for much of a monthly payment if I turn it into an annuity.
Thoughts?
Many thanks!

Is there a reason you have to do anything with it ? Besides just leave it there and let it keep getting what little interest it is.

I would either leave it alone (assuming that your employer's plan allows retirees to keep their 401(k) plan in tact - most do) or roll it to an IRA. The advantage of rolling it over is that it gives more choices for investment options. But if you're happy with how the money is invested in the 401(k), just leave it alone until you need it.

You have a few options here. Since you are approaching retirement age and do not have a large retirement account you can always take it out and use it as you said for living expenses, making sure to set some aside for moving expenses, maybe in an interest bearing savings account. Even though the interest earned would be small, it would still grow a little.

Leaving your 401k funds alone could be beneficial if you want to let them grow a little more. However how long will it be before you actually need that money. It isn't going to grow enough to really make much of a difference in the amount that is in there. You could always take a loan on it to help pay moving expenses, there is a short video titled 401k cash outs vs. 401k loans (http://www.youtube.com/watch?v=YtR1D122ajs), but then again you would be faced with the repayment of the loan.

Bottom line is there isn't really enough in the 401k account to make leaving it in there vs. taking it out much different. Like I said leaving it in there isn't going to make much of a difference when it comes to cashing it out at retirement age. You can read more about how to monitor your 401k (http://protectyour401k.com/how-and-why-to-monitor-your-401k/), and that way you will know how much is in there at all times, and when would be a good time to cash out.

You could always take a loan on it to help pay moving expenses

Sorry, but taking a loan on a 401(k) when you are about to leave the company is NOT a good idea unless there is a dire and immmediate need for cash (which there doesn't seem to be in this case). Better to keep the money in a qualified plan (401(k) or IRA) until needed.