Usually with a balance of $5000 the old employer will allow you to leave it there as is--- You can then wait until you are eligible to move it to your new employer's plan. You can also move it to an IRA... however remembere there is a distribution fee associated with each transfer... so if you move it to an IRA then into the new plan.. you will pay two distribution fees rather than one...
If you use the money -- they will withhold the distribution fee, plus 20% for federal taxes... They will deduct $1000---- you will also be responsible for a $500 penalty when you file your taxes next year (10%) if you are under 59 1/2---
It is really up to you what you do with it... the plan it is in now, should have an advisor assigned to whom you can speak to for specific advice.....