Our experts answer readers’ investing questions and write unbiased product reviews (here’s how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own. If you have a 401(k) plan from a previous employer, you can roll over the assets from that account into a new IRA to keep your tax-advantaged retirement plan without tax penalties. As long as the condition of your existing 401(k) permits a rollover, you can open either a traditional or Roth IRA with some of the most popular online brokers. Best Rollover IRAs Fidelity: Best overall SoFi: Best for beginners Vanguard Personal Advisor Services: Best for advanced investors Betterment: Best for socially responsible investing Wealthfront: Best for large accounts Charles Schwab: Best investment options Robinhood: Best IRA match Compare Brokers for IRA Rollovers Best Overall Rollover IRA Fidelity Investments Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.86/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Fidelity Investments offers a wide range of investing products, including fractional shares. Account Minimum $0 ($25,000 Fidelity Personalized Planning & Advice) Fees 0% ($0, $3/month, or 0.35% for robo-advisor) Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account minimum or account fees Check mark icon A check mark. It indicates a confirmation of your intended interaction. No commissions for stock, ETF, and options trades; fractional shares available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-transaction-fee mutual funds and fee-free mutual funds Check mark icon A check mark. It indicates a confirmation of your intended interaction. Several research tools and trading platforms available Cons con icon Two crossed lines that form an ‘X’. Fidelity Go accounts cost more for investors with higher account balances con icon Two crossed lines that form an ‘X’. Representative-assisted trades are slightly more expensive than other brokerages con icon Two crossed lines that form an ‘X’. No cryptocurrencies Product Details Promotion: None at this time App store rating: 4.8 iOS/4.3 Android Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021. Consider it if: You’re focused on long-term investing and retirement. Best Rollover IRA for Beginners SoFi Invest Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.65/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Get up to $1,000 in stock when you fund a new account. Account Minimum $0 ($1 to start investing); $5 fractional shares Fees 0% for active trading and automated investing (1.25% for cryptocurrencies) Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum to start investing Check mark icon A check mark. It indicates a confirmation of your intended interaction. No account or trading fees, and low fees to own funds Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to Certified Financial Planners at no additional charge Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cryptocurrency trading and IPOs available Cons con icon Two crossed lines that form an ‘X’. No tax-loss harvesting, an advanced investing technique where you sell a stock or mutual fund at a loss for a tax benefit con icon Two crossed lines that form an ‘X’. No option for stop-loss orders when actively investing. SoFi’s active investing account only uses market orders con icon Two crossed lines that form an ‘X’. Currently only available to US residents Product Details Promotion: Get up to $1,000 in stock when you fund a new account. App store rating: 4.8 iOS/4.1 Android Consider it if: You want an easy-to-use platform paired with rock-bottom pricing. Best Rollover IRA for Advanced Investors Vanguard Personal Advisor Services Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.54/5 Fees 0.30% balances under $5 million; those with larger balances pay less Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low fees Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to fiduciary advisors Check mark icon A check mark. It indicates a confirmation of your intended interaction. Supported account types include individual and joint accounts, traditional and Roth IRAs, trust accounts, and eligible employer-sponsored accounts Check mark icon A check mark. It indicates a confirmation of your intended interaction. Account includes automatic portfolio rebalancing and specific strategies to suit different goals Cons con icon Two crossed lines that form an ‘X’. No 529 plans Product Details Promotion: None at this time Best Rollover IRA for Socially Responsible Investing Betterment Investing Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.6/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Betterment offers individual or joint accounts, IRAs, trust accounts, and cash reserve or checking accounts. Account Minimum $0 to open, $10 to start investing ($100,000 for premium plan) Fees 0.25%/year for digital plan; 0.40%/ year for premium plan; 1%/year for crypto portfolios Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum for standard investing account Check mark icon A check mark. It indicates a confirmation of your intended interaction. Goal-based planning, tax-loss harvesting, charitable giving, and socially responsible investing available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to certified financial planners Check mark icon A check mark. It indicates a confirmation of your intended interaction. Mobile app with external account syncing options Cons con icon Two crossed lines that form an ‘X’. You’ll have to pay to consult a human advisor, unless you have the premium plan Product Details Promotion: None at this time. App store rating: 4.7 iOS/4.5 Android Consider it if: You want access to robo-advice with multiple service levels. Best Rollover IRA for Large Accounts Wealthfront Investing Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.34/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus. Account Minimum $1 ($500 for automated investing) Fees $0 for stock trades. 0.25% for automated investing (0.06% to 0.13% for fund fees) Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low annual fee for investment accounts; crypto trust investments available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Tax-loss harvesting, portfolio lines of credit, 529 college savings plans available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cash account Check mark icon A check mark. It indicates a confirmation of your intended interaction. Mobile app and investing and retirement tools Cons con icon Two crossed lines that form an ‘X’. You need at least $100,000 to utilize additional investment strategies con icon Two crossed lines that form an ‘X’. No human advisor access Product Details Consider it if: You’re balancing several goals and want to streamline your finances. Promotion: Fund your first taxable investment account with at least $500 in the first 30 days of account opening and earn a $50 bonus. Best Rollover IRA for Investment Options Charles Schwab Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.88/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Open and fund your account and get $101 from Schwab to split equally across the top five stocks in the S&P 500 Account Minimum $0 ($5,000 for Schwab Intelligent Portfolios; $25,000 Schwab Intelligent Portfolios Premium) Fees 0% ($0 Schwab Intelligent Portfolios; $30/month Schwab Intelligent Portfolios Premium) Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimums; commission-free trading on stocks, ETFs, and options Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-load mutual funds and 50+ Schwab-managed funds; fractional shares (Stock slices) available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Automated and advisor-managed accounts available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Multiple trading platforms; stock screeners and other trading tools Cons con icon Two crossed lines that form an ‘X’. $5,000 minimum for automated Schwab Intelligent Portfolios is on the higher end con icon Two crossed lines that form an ‘X’. Schwab’s no-load funds have a $100 minimum; some competitors offer lower minimums Product Details App store rating: 4.8 iOS/3.8 Android Consider it if: You want a wide range of account types, with easy-to-use apps and web interfaces Awards: Investor’s Business Daily recognized Charles Schwab as one of its Most Trusted Financial Companies for 2021. Robinhood Investing Insider’s Rating A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star 4.21/5 Icon of check mark inside a promo stamp It indicates a confirmed selection. Perks Earn free stock valued at up to $200 when you open an account. Account Minimum $0 ($1 for fractional shares; $2,000 for margin trading through Robinhood Gold) Fees 0% ($5/month for Robinhood Gold) Pros Check mark icon A check mark. It indicates a confirmation of your intended interaction. Free stock, option, ETF, and cryptocurrency trades; 1.50% APY on uninvested cash for non-Gold users and 4.90% for Gold members Check mark icon A check mark. It indicates a confirmation of your intended interaction. IPO investing available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Cash management accounts available Check mark icon A check mark. It indicates a confirmation of your intended interaction. Website is easy to navigate; advanced charts for all users Cons con icon Two crossed lines that form an ‘X’. Lack of investing research and trading tools; can only take advantage of professional research if you’re a Robinhood Gold member con icon Two crossed lines that form an ‘X’. No joint accounts, education savings accounts, or mutual funds Product Details App store rating: 4.2 iOS/4.0 Android Consider it if: You want to trade crypto and invest in a wide range of stocks and ETFs. 401(k) Rollover Frequently Asked Questions (FAQs) Yes. If the brokerage permits it, a 401(k) rollover can be done electronically through a wire transfer. The best place for your 401(k) rollover depends on your individual situation. The best brokerage for a 401(k) rollover depends on your goals, desired assets to invest in, level of experience, and how much you’re willing to pay in minimums and fees. Make sure to compare all your options before opening an account. You’ll have 60 days to roll over your assets from a previous 401(k) plan to a new employer-sponsored plan or IRA. After 60 days, you may be penalized or hit with tax liabilities. You could also lose the tax advantages on your account. Rollover IRAs are often a good idea since IRAs offer more investment options compared to 401(k) plans, along with tax advantages and increased payout options. Plus if you want to be more hands-on, some brokers offer self-directed IRAs and IRAs for active investors. Some disadvantages of a rollover IRA include higher fees, no employer match, no loan options, and less creditor protection. Also, if you have stock from your previous employer in your 401(k), you may not be able to roll it over into your new account. Online Brokers For a 401(k) Rollover Best Overall Rollover IRA Fidelity Fidelity Investments is one of the best robo-advisors and online brokerages for retirement savings due to its low fees, $0 ($25,000 Fidelity Personalized Planning & Advice) account minimum, commission-free trades, account features, and access to market research. Both active and passive investors can benefit from a Fidelity brokerage account. Fidelity’s self-directed brokerage accounts allow investors to buy and sell stocks, bonds, mutual funds, and ETFs. More advanced traders can take advantage of fractional shares, smart trading technology, commission-free trades, and goal-building features. Fidelity Go is the platform’s robo-advisor that orders fully customizable portfolios based on your risk tolerance, goals, and time horizon. It invests your funds in a blend of domestic and foreign stocks, bonds, and other short-term investments. Outside of Fidelity Go, you can open a Fidelity Wealth Services account, Strategic Disciplines account, or Personalized Planning & Advice account. These accounts are best for hands-off investors who want their assets fully or partially managed by a certified financial planner (CFP). A Fidelity retirement account gets you access to a handful of helpful tools and retirement calculators, including the guaranteed income estimator and the retirement strategies tax estimator. On top of that, Fidelity allows you to open a brokerage account within your retirement savings account. This gets you access to a broader range of investment options like CDs, foreign securities, mortgage securities, UITs, REITs, and options. What to watch out for: You may have to pay a 0.35% advisory fee if you have an account balance of over $50,000, plus Fidelity charges higher margin rates than most competitor platforms. Fidelity Go doesn’t offer tax loss harvesting. There are also additional fees for any phone or broker-assisted trades. Best Rollover IRA for Beginners SoFi Invest SoFi Invest is a prominent choice for all kinds of investors to roll over their 401(k) funds into a new traditional IRA or Roth IRA. You can open your SoFi IRA as either a self-directed or automated retirement account. Even though anyone can benefit from a SoFi account, its easy-to-use interface and straightforward planning/goal tools make it one of the best online brokerages for beginners. Moreover, SoFi has no minimum for opening an account and no account or trading fees. SoFi’s robo-advisor creates a personalized portfolio of stocks and bonds based on your retirement goals, risk tolerance, and time horizon. Or you can invest in one of the pre-built ETF portfolios. Robo-advisor accounts offer automatic quarterly portfolio rebalancing, goal planning, recurring deposits, and portfolio diversification tools. Self-directed accounts are best for active investors. You can buy and sell commission-free stocks, ETFs, fractional shares, and crypto. Some assets (such as crypto and fractional shares) have additional trading fees. If you’re a SoFi member, you get access to invest in initial public offerings (IPOs). SoFi is also currently the only online brokerage with plans to distribute Instacart stock, following its IPO in 2023, to users. SoFi also provides clients with retirement-focused financial tools and planning resources, such as access to SoFi’s financial planners, auto rebalancing (limited to automated accounts), goal-building tools, and additional member benefits. What to watch out for: SoFi isn’t a good option for investors looking for tax-loss harvesting or socially conscious investing. Best Rollover IRA for Advanced Investors Vanguard Personal Advisor Services Vanguard Personal Advisor Services is one of two automated accounts offered by Vanguard. The other automated account is Vanguard Digital Advisor. Vanguard Personal Advisor Services provides both digital management and ongoing financial advice from fiduciary advisors. This online brokerage is best suited for advanced traders who can utilize the platform’s wealth-building products, financial advisor access, and advanced account features. You can roll over a past employer-sponsored 401(k) or 403(b) account into a new or existing traditional or Roth Vanguard IRA. You can invest in Vanguard’s diversified blend of US and internal exchange-traded funds (ETFs), mutual funds, and ESG investing portfolios. Vanguard’s fiduciary advisor provides users with ongoing investment guidance, goal-building advice, and active portfolio management. Vanguard Personal Advisor Services also offers tax-loss harvesting, the convenience of a robo-advisor, and a customized financial plan. What to look out for: Only investors that can meet Vanguard Personal Advisor Services’ high $50,000 minimum should open an account. Plus, the more money in your account, the lower the advisory fee. Best Rollover IRA for Socially Responsible Investing Betterment Betterment Investing is a robo-advisor that creates professionally built, personalized low-cost ETF and cryptocurrency portfolios. If you’re looking to invest in businesses that align with your values, Betterment is a great choice. It’s one of the best socially responsible investing apps out there. Betterment offers three socially responsible portfolios: Broad impact: This portfolio invests in diversified ETFs that are relevant to all environmental, social, and governance (ESG) elements. For example, this includes businesses focused on ethical labor management and lowering carbon emissions. Climate impact: This portfolio invests in a diversified ETF portfolio of companies that focus on lowering carbon emissions, don’t use fossil fuels, and fund green projects. Social impact: This ETF portfolio is a blend of companies that support and are diligently working toward minority empowerment, gender diversity, and all-around social equity. The platform also offers Goldman Sachs Smart Beta portfolios, cryptocurrency portfolios, and a BlackRock Target Income portfolio. There’s no minimum investment requirement to open an account with Betterment (unless you open a premium plan), and fees are generally low. Betterment also offers tax loss harvesting features. What to watch out for: To access CFPs from Betterment, you must have at least $100,000 in your account. Best Rollover IRA for Large Accounts Wealthfront Wealthfront Investing is one of the best robo-advisors for low-cost automated portfolio management, ESG investing, and crypto trusts. Both beginners and experienced investors can use Wealthfront. While you only need $1 to start investing with Wealthfront, it’s best for larger account balances since you need at least $100,000 to get access to Wealthfront’s direct indexing and risk parity investing strategies. Direct indexing: An enhanced version of tax loss harvesting that allows Wealthfront to harvest more losses by searching for price changes within stocks from the US stock index. This in turn lowers your tax bill. Risk parity: Wealthfront uses an asset allocation strategy that boosts your risk-adjusted returns. Investors can roll over a 401(k), 403(b), or 457 plan to a Wealthfront traditional or Roth IRA. The platform offers dividend growth stocks, emerging market stocks, corporate bonds, ETFs, index funds, a high-yield bond portfolio, and more. Wealthfront also offers tax loss harvesting, auto rebalancing, and smart beta technology. What to watch out for: Wealthfront doesn’t offer ongoing human advisor access. It also has a higher minimum ($500) to start investing compared to some other leading robo-advisors. Best IRA Rollover for Investment Options Charles Schwab Charles Schwab is one of the top brokerages for all kinds of investors, especially retirement-focused individuals wanting to invest funds in multiple asset classes. Charles Schwab offers stocks, bonds, ETFs, and CDs, as well as over 200 index funds and 4,000 mutual funds. The brokerage also offers low fees, no account minimum, and commission-free trading. You can rollover your 401(k) plan easily into a traditional or Roth IRA. Charles Schwab offers both self-directed and automated accounts. But automated accounts only invest in low-cost ETFs, which include Schwab ETFs. Charles Schwab IRAs get you access to the brokerage’s selection of retirement tools, planning calculators (including retirement savings calculator and RMD calculator), the latest market commentary, and insight and investing ideas from Schwab experts. What to watch out for: Charles Schwab’s automated investing platform (Schwab Intelligent Portfolios) requires a much higher minimum ($5,000 minimum or $25,000 for Portfolios Premium). Best Rollover for an IRA Match Robinhood Robinhood Investing is one of the best investment apps for beginners and active traders interested in investing in commission-free trades of stocks, options, ETFs, IPOs, fractional shares, and cryptocurrencies. But retirement accounts only trade stocks and ETFs. Robinhood notes on its site that options trading is coming soon for eligible users. Robinhood retirement accounts offer both traditional IRAs and Roth IRAs. When you roll over your 401(k) into a Robinhood IRA, you get access to recommended portfolios, compound interest on uninvested cash, and Robinhood Gold benefits ($2,000 minimum to get started). But the most notable feature of Robinhood retirement savings accounts is the 1% match. Most 401(k) plans have the benefit of an employer match, which is when an employer matches a percentage of the contributions. IRAs don’t have this benefit. Robinhood, however, is the first and only brokerage to offer a match benefit. So you’ll get an extra 1% on every dollar you deposit into your IRA. Although Robinhood doesn’t offer an automated investing account, the platform does have an automated portfolio builder. Other notable features include Robinhood’s educational library, 24/7 customer support, 24-hour market access, and access to advanced market data and professional research. What to watch out for: Robinhood doesn’t offer many advanced charting and investing tools. IRAs don’t offer fractional shares, IPOs, or cryptocurrencies. Other Online Brokers For 401(k) Rollovers We Considered Depending on your current 401(k) plan, time horizon, level of expertise, and goals the best online broker for a 401(k) rollover varies from person to person. Are you looking for convenience? Advanced investing tools? An IRA match? While these platforms may not have earned a spot on the “best of” list for 401(k) rollovers, they may still be a good option for you. Here are some of the IRA rollover runner-ups. E*TRADE: E*TRADE is a great platform for active traders interested in investing in low-cost stocks, ETFs, and options either through a managed, pre-built, or automated portfolio. You can roll over your 401(k) to a traditional IRA or Roth IRA. There’s no account minimum to start investing, but you will need at least $500 in your account for automated investing. But E*TRADE doesn’t offer tax loss harvesting or human advisor access. Webull: Webull is an online brokerage that offers commission-free trading, crypto trading, margin trading, and retirement accounts (including rollovers). The brokerage gets you access to free real-time market quotes, 24/7 customer support, and extended trading hours. But there are no automated investing options and the educational resources are limited. Webull IRAs only allow the trading of stocks and ETFs. M1 Finance: M1 Finance has both traditional and Roth IRA account options for 401(k) rollovers, and you can trade stocks, ETFs, fractional shares, and more. It offers both DIY and automated accounts. However, M1 Finance doesn’t offer tax loss harvesting or access to human advisors. It also has a higher minimum compared to similar platforms on this list ($500 minimum for IRAs). Interactive Brokers: Interactive Brokers is one of the best online brokers for advanced traders, which also offers access to global markets and market analysis. Beginners may also benefit from the platform’s more casual version, Interactive Brokers Lite. Interactive Brokers IRAs also allow margin trading and currency products. But the Lite version requires a $100 minimum to start investing, and the Interactive Brokers site is difficult to navigate. It also doesn’t provide access to human advisors. Ally Invest Robo Portfolios: Ally Invest is a great platform for passive investors interested in solely investing in ETFs. The platform invests 70% of your funds into a diversified cash-enhanced investment portfolio based on your risk tolerance and investment goals. The rest of your money is set aside to earn interest. But for a slightly high $100 minimum, Ally Invest doesn’t provide tax loss harvesting or human advisor access. Why You Should Trust Us: Our Methodology We used Personal Finance Insider’s methodology for rating investment platforms when reviewing online brokers that offer 401(k) rollovers in order to find the best platforms for investment options, low fees and minimums, portfolio types, human advisor access, and customer service. We also favored platforms that offered a range of other features and products, such as tax-loss harvesting, robo-advisor access, and market research. Investment platforms are given a rating between 0 and 5. <br /> Tessa Campbell Junior Investing Reporter Elias Shaya Jr Compliance Associate Elias Shaya is a junior compliance associate on the Personal Finance Insider team based in New York City. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that readers already know and love. The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up to date and accurate. He joined Insider in February 2022 as a fellow on the compliance team. Elias has a Bachelor of Science in International Business from the CUNY College of Staten Island. Prior to joining Insider, he volunteered at the New York Presbyterian Hospital, where he worked with the biomedical engineering department. In his spare time, Elias enjoys exploring new restaurants, traveling to visit his family in Lebanon, and spending time with friends. Read more Read less Source link Post Views: 137 Post navigation NI Investment Summit: What happened when 200 investors descended on Belfast Bulls Buy on Lower Odds of Rate Hike, but Is It a Trap?