Rollover to an IRA
Rollover to an IRA — Sometimes your retirement savings needs to get a move on
What is a rollover into an IRA?
A rollover is when you move the money from your retirement plan into an IRA. You avoid having to pay taxes or penalties that would be due if you actually received a cash distribution. Everything moves over to the new account where it continues to have the potential to grow income tax deferred.
A rollover is when you transfer money from your retirement plan into an IRA.
What can you roll over?
You can do a tax-free rollover from most employer-sponsored retirement plan accounts that contain pre and post-tax contributions, including:
For a full list, please visit IRS.gov.
You can also roll over funds from one traditional IRA to another or from other Roth accounts (like Roth 401(k)s or Roth 403(b)s) into a Roth IRA but you can’t mix Roth funds and pre-tax employer plan or traditional IRA funds.
Why consider a rollover?
Consolidating multiple accounts into a rollover IRA can help you:
- Avoid overlapping investments — With multiple accounts, you might inadvertently invest in the same investment across different accounts. A rollover makes it easier to track where your money is invested.
- Simplify your paperwork — Instead of having multiple statements in varying formats, you can see your total retirement investing picture on a single statement.
- Know where your money is — A rollover keeps your assets in one place where it’s easier to manage, making it less likely you’ll forget about an account from many years back.
- Future consolidation opportunities — Once you set up a rollover IRA, you have a convenient place to consolidate future accounts if or when you change jobs.
We can help
Rollovers can help you take control of your retirement savings, particularly if you’re finding it hard to remember where all of your money is invested. Often, moving money into a rollover IRA can lower your account management expenses and provide you with a wider range of investment options.