I would contact a reputable financial advisor so you can roll it into another retirement account. Charles Schwab and Edward Jones are two places that can handle this for you. Simply make an appointment to meet with their advisor, and discuss how to roll it over. Just be on the look out for maintenance fees, etc.

When you withdraw the money from his existing 401K, make sure that the check IS NOT in your husband's name. It MUST be in the name of the new investment company. If the check is in your husband's name, you will be subject to additional taxes. However, if the 401K check is written directly to the other company, you avoid the tax ramifications.

Good luck.

There are a lot of firms that will insist in rolling the 401k over into another investment such as an IRA etc. Also if your husband has a new company with a 401k plan, check with them to see if he can simply roll his 401k balance into the new 401k.

As DonnaW said - probably best to seek proper financial advice, and be aware of any transfer or maintenance fees. Also check with your bank - sometimes they offer free financial advise to account holders and may also have a decent investment opportunity that would assist you...

If the sponsor or employer is out of business, in reality, the plan is terminated. The participants including your husband becomes 100% vested if they are not ready vested. You will have the option to get a distribution (cash out) or rollover to your IRA or the new 401K if there is one.

Since you do not want to cash out, you better option is to roll it over to a ira account.

Talk to a financial planner, your tax preparer