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Best accounts to roll over 401k to IRA for 2024

Discover the best IRA accounts to roll over your 401k, how to roll over & the benefits.

Our pick for educational content

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  • $0 commission stocks and ETFs and competitive options trading fees
  • Trade stocks, ETFs, options, futures, future options and micro futures
  • Pro-grade trading platform with cutting-edge risk analysis tools

Our pick for transfer bonus

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  • 1% match on IRA contributions and 401(k) rollovers
  • Complimentary financial planner and no-advisory-fee robo-advisor
  • Access private credit, venture capital and other alternative asset funds
  • $0 annual fee and no options contract fees

Best for rollovers

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  • Get 1%–3% match on contributions, IRA transfers and 401(k) rollovers
  • Choose your investments or get a recommended portfolio of ETFs
  • Get bigger instant deposits, professional research and more with Robinhood Gold

Best Rollover IRA accounts

We’ve curated 5 standout platforms to help you find the best IRA accounts for an IRA rollover.

  • Vanguard: Best for investors near retirement age & access to a human advisor
  • Acorns: Best for investing small amounts

SoFi IRA

4.2
★★★★★

Finder score

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Stock trade fee$0
Minimum deposit$0

Tastytrade IRA

4.3
★★★★★

Finder score

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Stock trade fee$0
Minimum deposit$0
Signup bonusN/A

Vanguard Personal Advisor

3.8
★★★★★

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Stock trade fee$0
Minimum deposit$50,000
Signup bonusN/A

Acorns Later

4.2
★★★★★

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Stock trade fee$0
Minimum deposit$0
Signup bonusN/A

M1 Finance IRA

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Stock trade fee$0
Minimum deposit$500
Signup bonusN/A

How we picked these platforms

We took a close look at platform features, fees, account minimums, customer support, research tools and mobile apps to curate this list of best Roth IRA accounts. Our honorable mentions went to platforms with less competitive fees but that had a niche feature or perk not typically found across traditional brokerages.

How do I roll over my 401(k)?

If you’re leaving your current job, you might want to roll over your 401(k) to your new employer’s retirement plan or an individual retirement account (IRA). You may also consider opting for a Roth option if you expect to be in a higher income bracket during retirement.
Here’s how to roll over a 401(k).

You have several 401(k) rollover options when it comes to transferring your 401(k) from an old job. The process may vary depending on what type of retirement account you choose.

Roll over a 401(k) into another 401(k)

  1. Confirm that your new 401(k) plan accepts 401(k) transfers.
  2. Complete a transfer form with your new plan’s provider, which generally requires your personal information like your Social Security number, your employee info and details about your old 401(k) plan.
  3. Contact your previous employer to see if you need to complete any additional paperwork.
  4. The new and old plan sponsors approve the transfer.
  5. Your old provider issues a check to distribute your 401(k) account balance.
  6. Your new provider deposits the check and purchases investments according to your plan instructions.

Roll over a 401(k) into a Roth IRA

  1. Compare and pick your new Roth IRA provider.
  2. Find out whether your new company allows you to roll over your 401(k) directly to a Roth IRA. Otherwise, you may need to roll over your 401(k) funds into a traditional IRA first and then convert it to a Roth IRA.
  3. Fill out a rollover request with your new broker.
  4. Ask your previous employer if there are any forms to fill out on their end.
  5. Both your new and old providers approve the transfer.
  6. If your new brokerage doesn’t allow you to contribute your 401(k) directly to a Roth IRA, your previous plan sponsor will distribute your 401(k) into a traditional IRA.
  7. Open a new Roth IRA.
  8. Fund your Roth IRA using the distribution from your traditional IRA.
  9. Since a Roth IRA is funded with after-tax income, you’ll need to pay income taxes on the amount that you transfer into your Roth IRA.

Roll over a 401(k) into a traditional IRA

  1. Compare and select a new brokerage for your IRA.
  2. Submit a rollover form with your new company.
  3. Complete any additional documents your previous plan’s provider may require.
  4. Your old and new sponsors approve the rollover.
  5. Your current financial company issues a check to your new IRA provider.
  6. Your new IRA company deposits the check into your account.

Roll over a Roth 401(k) into a new 401(k)

If you currently have a Roth 401(k), you must transfer the funds to another Roth account.

Roll over a Roth 401(k) into a new Roth 401(k)

  1. Verify that your new employer offers Roth 401(k) retirement accounts and allows transfers.
  2. Complete a transfer form with your new employer’s Roth 401(k) sponsor.
  3. Reach out to your old company about its rollover process, including any additional paperwork you may need to fill out.
  4. Both your old and new employers approve the transfer.
  5. Your old plan’s Roth 401(k) provider issues a check to your new company.
  6. Your new Roth 401(k) company funds your account with the check.

Advantages of rolling over a 401(k)

Rolling over your 401(k) has distinct benefits, including consolidating your retirement accounts and potentially avoiding fees your previous plan may charge former employees.
Transferring your 401(k) to your new employer’s 401(k) plan lets you continue to fund your plan while deferring taxes until you withdraw from the account. And if you continue working at the same company, you may delay the required minimum distributions (RMD) when you turn 72.
Since individual retirement accounts (IRA) are individually owned, rolling over your 401(k) to an IRA means you don’t have to worry about rolling your account over again if you change jobs. And IRAs generally have more investment choices than employer-sponsored 401(k) plans.

Keeping a 401(k) where it is

Employers generally allow you to keep your 401(k) where it is if your account balance is over $5,000. If you’re happy with your current investment options and management fees, you may consider leaving your money where it is.
But if you change jobs often, you could end up leaving behind a series of 401(k) plans that could prove challenging to manage. And if you’re no longer working for the company that sponsors the account, you may need to withdraw the required minimum distribution (RMD) from each account every year when you turn 72.

Avoiding penalties and fees when rolling over a 401(k)

There are several ways to avoid incurring taxes and penalties when rolling over a 401(k). When initiating a transfer request, it’s best to request a direct rollover so your old plan administrator can make the payment directly to your new retirement plan or IRA.
If your distribution is paid directly to you instead of directly to your new retirement plan or IRA, your employer will withhold 20% of the amount. And you’ll have 60 days to roll it over to another plan and make up the funds for the taxes withheld, or the IRS will treat it as a taxable withdrawal, which may be subject to income tax and early withdrawal penalty if you’re under 59 and a half years old.

Compare brokerages that offer Rollover IRA accounts

1 - 6 of 6
Name Product USFST Minimum deposit Annual fee Retirement account types
Tastytrade IRA
Finder Score: 4.3 / 5: ★★★★★
Tastytrade IRA
$0
$0 per year
Roth, Traditional, SEP, Rollover, Beneficiary Traditional, Beneficiary Roth
Invest in stocks, ETFs, options, futures and more in your IRA, with commission-free stock and ETF trades and a powerful trading platform.
SoFi IRA
Finder Score: 4.2 / 5: ★★★★★
SoFi IRA
$0
$0 per month
Roth, Traditional, SEP, Rollover
Trade stocks, options, ETFs, mutual funds and alternative asset funds, with complimentary financial advice and a no-advisory-fee robo-advisor.
Robinhood Retirement
Finder Score: 4.4 / 5: ★★★★★
Robinhood Retirement
$0
$0 per month
Roth, Traditional, Rollover
Boost your retirement savings with 1% in matching funds on every dollar contributed, transferred or rolled over to a Robinhood IRA.
Acorns Later
Finder Score: 4.2 / 5: ★★★★★
Acorns Later
$0
$3 per month
Roth, Traditional, SEP
Automatic ETF investing with as little as $5. Annual fee of $3, $6 or $12 per month depending on subscription.
Vanguard IRA
Finder Score: 4 / 5: ★★★★★
Vanguard IRA
$0
$20 per year
Roth, Traditional, SEP, Spousal, Rollover
Save for retirement with Vanguard's commission-free stocks, ETFs and 160+ no-transaction-fee mutual funds.
Interactive Brokers IRA
Finder Score: 4.5 / 5: ★★★★★
Interactive Brokers IRA
$0
$0 per year
Roth, Traditional, SEP, Rollover
Choose from 6 IRA account options, with access to stocks, ETFs , futures, currencies and more.
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Finder is not an advisor or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.

Bottom line

Be sure to weigh all your options when considering rolling over a 401(k), including tax implications and potential penalties. If your new employer’s 401(k) isn’t a good fit, compare brokerages to find the right IRA for your retirement goals.

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