Best Rollover IRA Accounts in May 2024

Opening an individual retirement account (IRA) is a smart way to save for retirement. Regardless of how much you can afford to place in the account, you can significantly bolster your retirement savings using an IRA while taking advantage of tax benefits. 

Rolling over a 401(k) plan into an IRA can provide greater control over your investments and savings. It’s a common practice after leaving an employer to avoid account fees. Use this list of the best rollover IRA accounts to locate the best place to put your retirement savings.

Quick Look: Best Rollover IRA Companies

• 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

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 best IRA accounts for rollovers.

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 retirement and investment accounts, and it’s easy to see why. If you already have a brokerage account with the bank, adding a rollover IRA is a smart move to house all accounts in one place. 

Fidelity 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.”

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.

3. Best for Large Account Balances: Vanguard Group

When you have a decent amount in your retirement account that you’re looking to roll over, 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.

4. Best for Hands-Off Investing: Betterment

When you need support to manage your 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.

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 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.

6. Best for Account Type Options: SoFi

Move your 401(k) funds to a SoFi IRA to select from traditional, Roth and simplified employee pensions (SEPs). Enjoy $0 commissions for stocks and EFTs. 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.

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.

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: Because you’re choosing your account, 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 cons of doing so.

• 401(k) accounts have better protection from creditors or bankruptcy filings.
• You can take loans from 401(k) accounts but not IRAs.
• 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

How to Move Your Old 401(k) Into a Rollover IRA

Moving an old 401(k) into a rollover IRA is simple. Here’s a look at the steps you should be prepared to complete:

• Open your account of choice. Most banks allow you to complete this process entirely online.
• Complete forms your old 401(k) account requires to move the funds, providing information about your rollover IRA for the funds transfer.
• Ensure the account is funded properly to your bank directly to avoid paying taxes on the funds as a withdrawal.
• Make investment decisions within your IRA.
• Manage your IRA as needed to watch your funds grow with fewer fees than you were paying on your 401(k).

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: 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

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.