Hey there, I am a 29yr old corporate guy.

I am going to Business School in the Fall of 09... I currently have about 10K in my company 401K... what are my options?
Should I just close it? And if so apart from the 10% penalty what else do I lose?
Thanks.

Your options are:

A. Do nothing. Most plans allow former employeees to stay in the plan as long as your investment is greater than $5K. This would make sense if you like the investment choices available, or just don't want to have to think about making a change. Be sure to keep your mailing address current.

B. Roll your account to a rollover IRA. Advantage - more choices in investment options, reduced paperwork if you already have an investment or IRA account. It is advisable to do a direct rollover so as to not incur any penalties or taxes.

C. Take some or all of the money in an early withdrawal. Major disadvantages: you pay 10% penalty plus income tax on the withdrawal, and lose your retirement investment. You'd be better off figuring out how to get through B school without tapping this fund.