What Accounts Can I Roll My 401k Into?

Rolling your 401(k) over is relatively straightforward, as all that is necessary to transfer it over is selecting a financial company and opening an IRA account with them, before having your assets shipped directly to them and depositing within 60 days to avoid paying taxes or penalties.


Rollovers are the process of moving retirement savings from one account into another, making the transfer easier and safer than ever. While direct rollovers from former employer to current account are generally safer, you may also conduct indirect rollovers by receiving checks made out directly to you from former employers and depositing them within 60 days or risk incurring tax penalties.

There are two kinds of Individual Retirement Arrangements (IRAs): Traditional and Roth. Both offer tax advantages; the primary difference being that Traditional IRAs allow pre-tax contributions and earnings while Roth IRAs require after-tax contributions. You may also choose an Employer Sponsored Pension Plan (ESPP IRA), an employee sponsored retirement plan tailored specifically for small businesses.

Many robo-advisors can help manage your IRA rollover at affordable fees. Betterment offers several portfolio options tailored to fit the risk tolerance and goals of its users; additionally, social impact funds may even be included if that’s important to them.


When changing jobs, there are multiple options for your 401(k). Either you can transfer it directly into your new employer’s plan, move it to an IRA account, or cash it out entirely; though cashing it out would require taxes and penalties be paid.

When contemplating a 401(k) rollover, it is imperative that it is completed within 60 days from distribution date. The reason for this is because your current administrator must withhold 20% for IRS and this money won’t come back into your tax return if not deposited into a new 401(k).

Before rolling over funds from an old 401(k) plan to a new one, it is wise to carefully assess its investment options. Many plans contain expensive institutional-priced investments which could end up costing you dearly; Schwab Intelligent Portfolios Premium(tm), our robo-advisor, is designed to build, monitor and rebalance diversified portfolios according to your goals automatically.

IRA custodians

If you’re considering rolling over your 401(k) into an IRA, conducting some initial research is key to selecting an institution. Be sure to compare investment options offered at various institutions as well as their online interfaces before selecting an IRA custodian who performs due diligence before selling investments to clients.

Consideration should also be given to whether an IRA custodian is licensed by the IRS. This is important, as they require their custodians to adhere to IRS rules regarding contribution limits, age requirements and other regulations. Lastly, check their Better Business Bureau rating; this will give an idea of their reputation and how well it handles customer complaints; low BBB ratings should be avoided whenever possible – having a great IRA custodian can save both taxes and penalties as well as ensure your rollover goes smoothly.


Wealthfront is one of the leading robo-advisors and provides investors with an array of investment choices, from stocks and bonds to cash investments and cash. Wealthfront also features tools for tracking progress towards meeting financial goals – its Path tool allowing users to run various scenarios to see how changes could alter your future finances.

The company offers low fees and an easy website experience, and their automated investments are founded on evidence-based investing, including tax loss harvesting and automatic dividend reinvestment. Their bond portfolio comprises both Treasury and corporate bonds as well as offering social impact bond funds.

Wealthfront stands out with exceptional customer service and support available 24/7, its user-friendly mobile app that integrates well with other accounts, tracking savings and spending tracking features and a FDIC-insured Wealthfront Cash account that earns interest at 2.51% rate.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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