What should I do with my 401K?

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You can take a distribution (cash out) of the plan, and pay any taxes and penalties along with it (distributions are taxed as current income plus a 10% penalty if you withdraw before you reach 59 1/2).

If you want to have it remain in a tax-deferred account, you can do so even if your new employer doesn't have a 401(k) plan of its own. This article explains the ins and outs of rolling your 401(k) into an IRA account. In a nutshell:

1. Check rollover eligibility with your previous 401(k) provider
2. Obtain rollover forms from the old provider
3. See what is needed for your new provider
4. Complete and submit the forms, and follow up