- Earn a 1% match on IRA contributions, up to the annual limit
- Unlimited, no-cost financial advice
- Get up to $1,000 in stock when you fund a new account within 30 days
Best Accounts to Rollover 401k to IRA for 2023
Discover the best IRA accounts to rollover your 401k, how to rollover & the benefits.
- $0 commissions on stocks and ETFs
- $0 closing commissions on stock and ETF options
- Get $100 - $2,000 when you open and fund an account with $5,000 to $100,000+
- Traditional, Roth and spousal IRAs
- Commission-free stocks, ETFs and Vanguard mutual funds
- Access to human or digital advice services
Best Rollover IRA accounts
We’ve curated 5 standout platforms to help you find the best IRA accounts for an IRA rollover.
- Best for investors who want guidance. SoFi offers free automated investing and unlimited personalized financial advice from a robo-advisor or a licensed human investment advisor at no additional cost.
SoFi offers some of the most competitive pricing on our list. In addition to commission-free stocks and exchange-traded funds (ETFs), it offers free account transfers, and there's no annual management fee to use the platform's robo-advisor — which is rare in the financial industry. What's more, through December 31, 2023, earn a 1% match from SoFi on contributions to your active or automated IRA, up to the annual limit. That means if you're under 50 and contribute up to the 2023 limit of $6,500, SoFi will contribute $65. If you're age 50 or older and contribute up to the 2023 limit of $7,500, SoFi will contribute $75.
For those who want access to a human advisor, SoFi's licensed investment specialists are standing by. This makes SoFi a practical fit for both hands-on and hands-off retirement-focused investors. Whether you're keen to buy and sell your own securities or let an algorithm do it for you, SoFi's active and automated Roth IRAs may fit the bill.
This brokerage is a practical fit for new traders seeking access to stocks and ETFs. Mobile app reviews suggest that the platform is intuitive and receives high praise from both Apple and Android users.
SoFi's major drawback is its limited asset offerings. While you can invest in stocks and ETFs in your Roth IRA via SoFi, you cannot invest in cryptocurrencies in it.
- Best for experienced traders and investors who want exposure to options and futures contracts alongside stocks and ETFs in their Roth IRA.
Tastytrade is best known as an options broker for highly experienced investors. The platform provides you with an assortment of tools to help you to execute your trades with precision.
There are no fees associated with opening and maintaining a Roth IRA with Tastytrade, aside from the normal trading fees the brokerage charges. If you close your Roth IRA account with Tastytrade, though, you’ll have to pay a $60 fee.
Tastytrade provides an array of educational resources and its customer support staff is easy to contact via phone.
However, Tastytrade isn’t necessarily the best platform for newbies or those who want to employ a set-it-and-forget-it investment strategy. Instead, it’s great for seasoned traders who are looking for exposure to options and futures contracts as well as stocks and ETFs in their Roth IRA.
Vanguard Personal Advisor
- Best for investors who are near retirement age and looking for access to a human advisor and an auto-rebalancing function for their portfolio. While you need a minimum of $50,000 in assets to enroll, the advisory fees are nominal compared to competitors.
When you enroll with Vanguard PAS, you get access to a robo-advisor that helps you to continually rebalance your portfolio based on your needs and goals as well as unlimited access to a human financial advisor. The advisors at Vanguard PAS are not paid a commission, so you can be sure that you are receiving unbiased advice from a fiduciary.
Vanguard charges a 0.3% fee to use its PAS platform, and you must have a minimum of $50,000 in assets to invest if you want to use the platform. Competitors like Personal Capital or Betterment Premium require a minimum of $100,000 to use their personal advisor services platforms.
Once enrolled in Vanguard PAS, you can invest in Vanguard’s selection of over 160 in-house mutual funds and ETFs in your Roth IRA. Plus, you can get exposure to fixed income products as well as socially responsible/ESG product options. And there are no fees for any of the purchases, sales or trades that you make within your portfolio.
- Best for investing small amounts Acorns rounds-up your debit or credit card purchases to the nearest dollar and enables you to invest the difference.
Acorns Later is the name of the division of Acorns that allows you to invest for your retirement. One of the products that Acorns Later offers is a Roth IRA, which allows you to save for your retirement with automatic round-ups on purchases.
Through Acorns Later, you can get exposure to stocks, ETFs, bonds, REITs and even a Bitcoin-linked ETF.
Keep in mind, though, that the platform charges a $5 monthly maintenance fee for this account, while a number of other platforms that offer Roth IRAs don’t charge such a fee. With that said, Acorns doesn’t charge any fees for trades.
And you might find the $5 fee worth it, as Acorns Later will automatically adjust your Roth IRA portfolio weighting depending on your age, investment goals and risk tolerance.
M1 Finance IRA
- Best for hybrid investors. M1’s automation and manual order capabilities makes it suitable for investors who want the option to set it and forget it or take the reins and manage their own portfolio.
M1 Finance is one of the more unique robo-advisors on the market. It offers automated portfolio rebalancing, yes — but it also allows investors to select their own portfolio holdings.
When you sign up for an M1 Finance Roth IRA, it prompts you to pick at least three investment slices to begin building your portfolio – or your “pie” as M1 likes to call it. It also asks to give each allocation an assigned weight, so M1 Finance knows how to prioritize your selections.
After that, M1 Finance is responsible for automatically rebalancing your portfolio and runs much like a traditional robo-advisor. M1 will only rebalance your portfolio using trades with new cash. It won’t sell an existing position or initiate a rebalance of your portfolio without your instruction.
You need at least $500 to get started, and there's no annual management fee. But M1 Finance doesn't offer true self-directed trading accounts, so active traders will need to look elsewhere.
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)
- Confirm that your new 401(k) plan accepts 401(k) transfers.
- 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.
- Contact your previous employer to see if you need to complete any additional paperwork.
- The new and old plan sponsors approve the transfer.
- Your old provider issues a check to distribute your 401(k) account balance.
- Your new provider deposits the check and purchases investments according to your plan instructions.
Roll over a 401(k) into a Roth IRA
- Compare and pick your new Roth IRA provider.
- 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.
- Fill out a rollover request with your new broker.
- Ask your previous employer if there are any forms to fill out on their end.
- Both your new and old providers approve the transfer.
- 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.
- Open a new Roth IRA.
- Fund your Roth IRA using the distribution from your traditional IRA.
- 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
- Compare and select a new brokerage for your IRA.
- Submit a rollover form with your new company.
- Complete any additional documents your previous plan’s provider may require.
- Your old and new sponsors approve the rollover.
- Your current financial company issues a check to your new IRA provider.
- 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)
- Verify that your new employer offers Roth 401(k) retirement accounts and allows transfers.
- Complete a transfer form with your new employer’s Roth 401(k) sponsor.
- Reach out to your old company about its rollover process, including any additional paperwork you may need to fill out.
- Both your old and new employers approve the transfer.
- Your old plan’s Roth 401(k) provider issues a check to your new company.
- 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
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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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