Rollover to new employer 401K or rollover Ira

[newkidontheblock]

My spouse is a about to change jobs. Her current employer 401K is with schwab.
New employer 401K is with Vanguard. Should we create a rollover Ira at vanguard or rollover to employer 401K with vanguard. Is there any advantage to one of these options.

[SSSS]

If you've made deductible contributions to the 401k, try to keep those funds in a 401k rather than in an IRA. Having them in an IRA will interfere with backdoor Roth IRA conversions, after-tax 401k to Roth IRA rollovers, etc.

Keep in mind that keeping the old funds in the old 401k is an option, especially if you have better investment choices in the old 401k.

[Duckie]

newkidontheblock, it depends. How close are you to hitting the income limit for Roth IRAs? See here. Rolling an old 401k over to an IRA will mess with the 
Backdoor Roth IRA
 option because of the pro-rata rule.

How good are the options/expenses in her (soon-to-be) old 401k? If she has at least $5K in the plan, she can keep her assets there.

How good are the options/expenses in her (soon-to-be) new 401k? (Although generally with Vanguard they should be fine.)

Whichever option you choose, you don't have to do it immediately. Make sure you know what all the choices and costs are/would be before you decide.