Best Rollover IRA Accounts of 2025

What are Rollover IRAs?

A rollover IRA is a type of Individual Retirement Account that allows individuals to transfer funds from an existing retirement account, like a 401(k) from a previous employer, into a new IRA. This process is designed to maintain the tax-deferred status of your retirement savings without incurring immediate taxes or penalties. It's a flexible option for managing retirement funds, especially for those changing jobs or retiring, who wish to consolidate their savings in one place.

Why Should You Open a Rollover IRA? Benefits and Opportunities

Opening a rollover IRA account comes with numerous benefits, including a wider variety of investment options compared to traditional employer-sponsored plans like 401(k)s. This can potentially lead to higher returns on your investments. A rollover IRA also simplifies your finances by consolidating multiple retirement accounts into one, making it easier to manage your investments. Additionally, opting for a Roth IRA rollover can provide tax-free growth and withdrawals, assuming certain conditions are met, which is a significant advantage for many investors.

What To Consider When Opening a Rollover IRA

When considering opening a rollover IRA, it's important to think about the type of IRA that best suits your financial situation—whether a traditional IRA or a Roth IRA rollover. The decision largely depends on your current tax rate, expected future income, and when you plan to start withdrawing funds. Other considerations include understanding the fees associated with the rollover IRA account, the investment options available, and whether your current financial institution offers the best rollover IRA terms compared to others in the market.

How To Open a Rollover IRA

Opening a rollover IRA typically involves several steps. First, decide where to open your new IRA account, considering factors such as fees, investment options, and customer service. Next, initiate the rollover process, which can involve a direct transfer or an indirect rollover, where funds are sent to you to deposit into the new IRA. It's crucial to follow IRS rules carefully to avoid taxes and penalties. For instance, in a 60-day rollover, you must deposit the funds into your new IRA within 60 days to maintain its tax-advantaged status.

Conclusion

Rollover IRAs are a powerful tool for managing retirement savings, offering flexibility, potentially better investment choices, and tax advantages. Whether it's rolling a 401k into an IRA or conducting an IRA to 401k rollover, the process can significantly impact your financial planning for retirement. As with any financial decision, it's wise to consult with a financial advisor to ensure that a rollover 401k to Roth IRA or any other type of rollover IRA aligns with your overall retirement strategy.

Disclosures

SoFi

¹Other fees apply.

²Terms and conditions apply*. For 401k rollovers, existing SoFi IRA members must complete 401k rollovers via this link. For SoFi members without a SoFi IRA, a SoFi IRA must first be opened, and 401k rollover must be completed utilizing Capitalize via this link. SoFi and Capitalize will charge no additional fees to process a 401(k) rollover to a SoFi IRA. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover. For IRA contributions, only deposits made via ACH and cash transfer from SoFi Bank accounts are eligible for the match. Click here for SoFi’s 1% Match terms and conditions.are eligible for the match. Click here for SoFi’s 1% Match terms and conditions.

SoFi and Capitalize will complete rollover at no cost. SoFi is not liable for any costs incurred from the existing 401k provider for rollover. Please check with your 401k provider for any fees or costs associated with the rollover.

J.P. Morgan Personal Advisors

³ INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Public.com

As part of the IRA Match Program, Public Investing will fund a 1% match of: (a) all eligible IRA transfers and 401(k) rollovers made to a Public IRA; and (b) all eligible contributions made to a Public IRA up to the account’s annual contribution limit. The matched funds must be kept in the account for at least 5 years to avoid an early removal fee. Match rate and other terms of the Match Program are subject to change at any time. See full terms here.