Best Rollover IRA Accounts in October 2024

Rolling over a 401(k) into an IRA provides greater control over retirement savings and increases investment options. Get started with J.P. Morgan or Vanguard.

Rolling over a 401(k) into an individual retirement account (IRA) can be a highly beneficial financial strategy as it provides you with greater control over your investments while potentially offering tax advantages that can enhance your overall financial security. With an IRA, you have the flexibility to choose from a wider range of investment options, which can help you tailor your portfolio to better align with your retirement goals. Regardless of your contribution amount, an IRA can strengthen your retirement savings.

If you're considering opening a rollover IRA, it's important to choose the right account that aligns with your financial goals and needs. Be sure to research and compare the different options from reputable and reliable financial institutions. Benzinga reviewed some of the best rollover IRA accounts available on the market today to get you started.

Quick Look at the Best Rollover IRA Providers:

• Best for $0 Trade Commissions: Fidelity Investments
• Best for No Account Minimum: J.P. Morgan IRA
• Best for Large Account Balances: Vanguard Group
• Best for Hands-Off Investing: Betterment
• Best for Robo-Advisor Account: Wealthfront Inc.
• Best for Account Type Options: SoFi

The Best Places to Rollover a 401(k) Account in 2024

IRAs are one of the most popular vehicles to save for retirement. And that’s not a big surprise since they offer some of the best freedom to invest your funds how you want them invested while charging minimum fees. Here’s a look at the top providers of the best IRA plans for rollover.

1. Best for $0 Trade Commissions: Fidelity Investments

Fidelity Investments offers outstanding investment tools and education for new investors. It’s a household name for investment and retirement accounts, and it’s easy to see why. If you already have a brokerage account with the bank, adding a Fidelity rollover IRA is a smart move to house all accounts in one place. 

Fidelity Investments provides low-cost retirement options with simple tools to manage your account and contributions. Most Redditors on this thread found that Fidelity was a great rollover IRA option with this to say: “The big 3 are Fidelity, Vanguard, Schwab. I prefer Fidelity, but you'll probably be fine with any of them.”

Why We Picked It: Fidelity Investments offers retirement planning tools to aid in managing contributions. These tools can also help you adjust your savings strategy if necessary, ensuring that you stay on the right path towards a comfortable retirement.

2. Best for No Account Minimum: J.P. Morgan IRA

Get started with a J.P. Morgan IRA account with any amount. You don’t need to have thousands put away to get started. Perhaps you only stayed at a job for a few months or a year and didn’t accumulate a large 401(k). Regardless of why you have limited funds to move, J.P. Morgan is a good choice for those funds. If you have other Chase products, it’s a no-brainer to move your retirement funds here as well because you can manage all accounts from the convenient mobile app and one-stop web browser tools.

Why We Picked It: J.P. Morgan offers no account minimum policy on rollover IRA accounts. This allows customers to open and maintain an account without having to worry about meeting a certain minimum balance requirement.

3. Best for Large Account Balances: The Vanguard Group

When you have a decent amount in your individual retirement account that you’re looking to roll over, The Vanguard Group offers advanced tools and access to fiduciary advisors to help you make the most of the funds. The fees and minimum account balance won’t make sense for some investors. Advanced traders find the tools and freedom to manage their accounts helpful.

Why We Picked It: Vanguard offers wealth management services and access to fiduciary advisors as part of your rollover IRA account. Whether you're looking to grow your wealth or preserve it for the long term, Vanguard can help you create a customized investment strategy.

4. Best for Hands-Off Investing: Betterment

When you need support to manage your individual retirement account, Betterment is a great option. Set your goals, place your funds in the account and allow the account to do the rest. You can take advantage of automatic rebalancing to keep working toward your goals without having to decide where to place your funds. Just know that your investment options are limited to exchange-traded funds (ETFs) and bond ETFs.

Why We Picked It: We love Betterment because of the simplicity and convenience it offers. You simply set up your account, choose your risk tolerance, and let their team of experts handle the rest. They will automatically rebalance your portfolio, optimize your tax strategy, and make adjustments as needed to ensure your money is working as hard as possible for you.

5. Best for Robo-Advisor Account: Wealthfront

Another great account for those who want minimal involvement with checking in on investments, rebalancing accounts and selecting where to place your 401(k) funds is Wealthfront. The robo-advisor account helps do it all for you with low management fees. Use the digital financial tools to check how you’re doing saving toward retirement and make adjustments to contributions accordingly.

Why We Picked It: Wealthfront offers one of the best IRA accounts to rollover 401k because of their robo-advisor feature. This can be particularly useful for those who may not have the time or expertise to actively manage their investments.

6. Best for Account Type Options: SoFi

Move your 401(k) funds to a SoFi IRA to select from traditional IRA, Roth IRA and simplified employee pension (SEP). Enjoy $0 commissions for stocks and ETFs. Get started with any amount of funds. SoFi is known for its financial tools and insights to help customers understand their financial status and needs. The mobile app gets outstanding ratings, and you can place multiple accounts with the provider to make managing your finances simple.

Why We Picked It: SoFi offers a wide range of investment options, from stocks and bonds to ETFs and mutual funds. This provides account holders with the flexibility to create a diversified investment portfolio that aligns with their financial goals and risk tolerance.

What Is a Rollover IRA?

A rollover IRA offers the opportunity to move funds from a previous employer’s 401(k) or other retirement account. It allows you to keep the funds tax-deferred so you don’t have to pay taxes and fees for moving the funds. You can also protect your account from withdrawal penalties by using a rollover IRA.

How to Choose the Best Rollover IRA Provider

Follow these top considerations to ensure you have the best rollover IRA based on your unique circumstances:

• Evaluate account minimums: Some accounts have higher minimums, making them unrealistic for some investors.
• Review the fees: Account fees can reduce your account returns quickly so make sure the fees match the benefits for the account.
• Consider whether a current financial provider offers an IRA: Using the same provider for multiple accounts can help you manage your finances with greater ease
• Check for perks and bonuses: Look for providers with the best rollover IRA promotions and deals. Some providers offer bonuses or new account perks, which can make the account more lucrative.
• Spend time planning your retirement needs: Choose an account that matches your retirement goals and financial skills.

What Are the Benefits of a Rollover IRA?

As you consider how to manage your retirement savings, consider the benefits a rollover IRA can provide.

• Avoid penalties: You won’t pay early withdrawal penalties or taxes on the funds at the time of transfer because you’re keeping the funds in a tax-deferred account.
• Minimal fees: Because you’re selecting the account, you can choose how you manage it and what fees you are comfortable with. In contrast, employer-sponsored 401(k) plans can charge high fees and reduce your overall earnings on the account.
• Greater investment options: You can select one that matches your preferences and includes access to the types of investments that best meet your goals and comfort level based on risk.
• Account control: You have more account control to complete information updates.
• Ongoing contributions: You have the freedom to contribute to the account on an ongoing basis.

What Are the Disadvantages of a Rollover IRA?

While there are many good reasons to open a rollover IRA, you should also consider the drawbacks of doing so.

• 401(k) accounts have better protection from creditors or bankruptcy filings.
• You can take loans from 401(k) accounts but not individual retirement accounts.
• You have a longer wait period to take penalty-free withdrawals because 401(k)s allow for it at age 55, but IRAs don’t allow for it until age 59½.
• You could increase your fees depending on the relationship and rates your previous employer had negotiated.

What Are Your Rollover Options?

When you leave a job that provided a retirement savings plan, such as a 401(k) or 403(b), you have several options for what to do with that money. Here are some common rollover options to consider:

• Roll over to a new employer's plan: If you are changing jobs, you may have the option to roll over your retirement savings into your new employer's retirement plan. This can be a convenient choice if you are happy with the investment options and fees offered by the new plan.
• Roll over to an IRA: One of the most popular choices is to roll over your retirement savings into an IRA. By doing this, you can maintain the tax deferral of your retirement savings and have more control over your investment choices.
• Leave your retirement savings with your previous employer: Depending on your former employer's rules, you may be able to leave your retirement savings in your current plan even after leaving the company.

Protect Your Retirement Funds

Employer-sponsored 401(k) plans are great because they often come with negotiated rates and matching benefits. But once you leave the employer, those benefits can go away. Protect your retirement funds with a rollover IRA that gives you the freedom to invest in the manner that is best for you.

Frequently Asked Questions