The post Best Rollover IRA Accounts in June 2024 by Rebekah Brately appeared first on Benzinga. Visit Benzinga to get more great content like this.
Planning to rollover your IRA? Get started with an IRA account from J.P. Morgan with any amount.
Rolling over a 401(k) plan into an individual retirement account (IRA) can provide greater control over your investments and savings. It’s a common practice after leaving an employer to avoid account fees. 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.
Before deciding on a rollover IRA account, be sure to research and compare the different options available to find the best fit for your goals and investment preferences. Use this list of the best rollover IRA accounts to locate the best place to put your retirement savings.
Quick Look: 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
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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
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securely through Fidelity Investments’s
website
Fidelity is a comprehensive and responsive brokerage suitable for both new and experienced traders alike. With complete access to the full U.S. stock and options markets, a set of state-of-the-art education and research tools, as well as a wide fee-free fund selection, Fidelity is equally useful for the veteran swing traders to novices opening their first accounts. Mobile traders will be especially happy with Fidelity’s app, which mirrors full capabilities of the platform. Though there isn’t much to criticize about Fidelity, the broker does have a few areas where it can afford to improve. Margin rates are significantly higher than most other brokers, especially for traders borrowing less than $25,000. It also doesn’t offer any access to the futures markets. Despite these minor flaws, Fidelity remains a strong choice for most investors.
Best For
- Easy-to-navigate yet functional platform strikes the perfect balance between expert tools and comfort for beginners
- Mobile trading app is fully-optimized and mirrors full functionality of the desktop platform
- Wide range of education and research options make learning more about securities and the market easier and less time-consuming
- Complete range of both independent and managed services available at exceptionally affordable prices
- Offers access to both domestic markets and 25 foreign markets, as well as a wide range of options contracts and over 10,000 mutual funds
- Mobile app that is well-integrated and works just as well as the desktop platform
- Wide selection of education tools and resources available free of charge
- Margin rates higher than many other competing brokerages
- No access to futures trading
- High fees for buying a non-Fidelity mutual fund (with over 3,300 fee-free funds available)
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.”
Why We Love It: We love Fidelity Investments because it offers retirement planning tools to aid in planning and 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
securely through J.P. Morgan Personal Advisors’s
website
J.P. Morgan Personal Advisors offers personalized guidance and expertise to assist clients in making informed investment decisions, managing their finances and working toward their financial goals while minimizing risks. They can also offer retirement planning, and wealth preservation. If you’re an investor seeking access to advisory and wealth management services to assist you in crafting a financial plan and identifying investments that match your goals, J.P. Morgan Personal Advisors could be the solution you’re looking for. J.P. Morgan’s team of financial advisors provide comprehensive financial planning remotely via video with low account minimums and expense ratios. Plus, this all comes with no advisory fees for the first 6 months after opening your account.
J.P. Morgan Personal Advisors employs human licensed fiduciary advisors to construct your financial plan and match you to a professionally designed investment portfolio. This licensed financial professional will look at your overall financial picture and build a custom strategy based on what‘s most important to you – whether that’s paying down debt, building your savings or investing towards a goal. As part of your professionally designed portfolio, they will recommend an investment portfolio of many different types of assets like mutual funds and exchange-traded funds (ETFs) based on your financial goals, risk tolerance and time horizon. Unlike robo-advisory services, this approach provides a personalized investment strategy tailored to your needs. You can connect with the financial advisors through video chat or phone whenever you need without worrying about additional fees, regardless of the frequency of the interaction.
However, while competitive compared to other advisory and management services, the $25,000 minimum account requirement may still be a significant challenge for many potential investors, but it is among the lowest in the industry. J.P. Morgan Personal Advisors is provided by J.P. Morgan Wealth Management, the U.S. wealth management division of JPMorgan Chase & Co., a leading financial services firm. Read on for a comprehensive review of this wealth management offering, its pros and cons and how it compares with similar services.
Best For
- People working towards long-term goals, such as retirement, or retirees seeking expert guidance from reputable financial advisors to manage their retirement savings, income and investments
- Young professionals passionate about building a solid financial plan and investment strategy to secure their financial future and so seeking a financial advisor with moderate account minimum and low expense ratio
- Individuals with a wide range of financial goals, such as saving for education, buying a home or preparing for retirement, who seek tailored solutions through financial advisory and wealth management services
- Low investment expense ratio
- Competitive account minimum
- Comprehensive and tailored investment or financial planning with ongoing access
- Investment management with automatic rebalancing
- Expert-crafted portfolio for different financial situations, risk tolerance and time horizon
- Hassle-free setup with dedicated support and guidance from the team
- Excellent customer service experience
- Supports retirement accounts — traditional, Roth and rollover
- Doesn’t offer tax services (tax loss harvesting)
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 Love It: We love J.P. Morgan because of its 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: Vanguard Group
get started
securely through Vanguard’s
website
Vanguard was the first to offer low-commission trading on inexpensive index funds based on consumer-friendly investment principles. Day traders might not find Vanguard’s old-school style appealing, but retirement savers, buy-and-hold investors and companies that seek employer-sponsored programs might want to take a gander. Vanguard is a sensible choice for common-sense investment advice and efficient products. It’s a company that sticks to the morals of its hardy pioneer, Jack Bogle.
Best For
- Retirement savers
- Buy-and-hold investors
- Investors looking for a simple stock trading platform
- Large family of inexpensive ETFs and mutual funds
- Strong stock research selections
- Non-intimidating platform and mobile app
- Only 10 technical indicators available for charts
- No futures or forex trading
- Not ideal for day traders
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.
Why We Love It: We love Vanguard because of its wealth management services and access to fiduciary advisors as part of your 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
get started
securely through Betterment’s
website
Betterment is a smart robo-money manager that helps you save, invest and even spend your money. It has more than 500,000 registered customers and manages over $21 billion in assets. As a fiduciary, Betterment is committed to act in your best interest at all times. The investing platform lets you manage your money, guide your investments and plan your retirement at your convenience.
Best For
- Investors with defined financial goals
- People who are new to investing
- Passive investors who want to diversify their portfolio
- Investors who want to invest heavily in ETFs
- Investors looking for low-cost investment options
- Investors looking to plan their retirement
- Can open an account with a $0 minimum balance
- Offers goal-based investing
- Charges low annual management fees
- Offers a wide range of stocks and ETFs
- Provides access to advanced investing tools
- Provides personalized financial advice plans
- Charges a high fee for personalized financial advice comparatively
- Not suitable for day traders and short-term investors
- Does not offer any real estate stocks, commodities and foreign exchange
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.
Why We Love 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
get started
securely through Wealthfront’s
website
Wealthfront is an integrated wealth-building platform. It brings long-established investment strategy and state-of-the-art financial planning and investment management technology together to simplify the science of money-making.
You can bank, invest, borrow and plan from the convenience of your smartphone. Wealthfront optimizes every deposit to help you make more money from every account.
Best For
- Long-term investors
- Anyone who wants to manage their financial control panel from a smartphone
- Investors with enough capital to get the full benefit of Wealthfront technology
- All-in-1 digital financial management
- Money intuitively diverted to your various checking, investment and savings accounts by priority and financial need
- Low fee or fee-free accounts
- No direct relationship with a human advisor
- Not best for those who can’t keep much money in their banking and investing accounts
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.
Why We Love It: We love Wealthfront for a rollover IRA 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
Get Started
securely through SoFi’s
website
SoFi’s mission is simple: to help reach clients like you reach their financial independence and realize their ambitions. SoFi knows that this independence comes from making decisions that help your money start to work for you in the long run. The brand helps individuals make these decisions through personal financial products such as personal loans, student loans and automated and active investing.
The brand additionally provides in-person experiences such as educational and networking events, personalized guidance from experienced financial planners and one-on-one advising with professional career coaches. SoFi’s services have been highlighted in outlets such as Forbes, Medium, and CNBC’s Make It.
Best For
- IPO Investing
- ETF and Mutual Fund Investors
- No Contract Fees
- Highly-rated mobile app for iPhone and Android
- No account fees; Transfer and Inactivity Fees are easily avoided
- More than most tradable securities included alternative asset funds
- Only available in the U.S.
- Limited selection of research and tools.
Move your 401(k) funds to a SoFi IRA to select from traditional IRA, Roth IRA 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.
Why We Love It: We love SoFi because of the wide range of investment options they offer. From stocks and bonds to ETFs and mutual funds, SoFi provides its 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: 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: 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
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
Are rollover IRAs a good idea?
Rollover IRAs are a good option for individuals looking to transfer retirement savings without taxes or penalties. They allow for consolidation of funds, more investment options and flexibility. However, it is important to consider fees, investment choices and personal financial goals before making a decision.
Answer Link
Is it better to transfer or rollover IRA?
The decision to transfer or rollover an IRA depends on personal circumstances and financial goals. Transferring involves moving funds directly between accounts, while rolling over involves taking possession of the funds and depositing them into a new account within 60 days. Transferring is simpler, while rolling over offers more control but carries the risk of tax consequences if not done correctly. The best option will vary depending on individual needs and preferences.
Answer Link
The post Best Rollover IRA Accounts in June 2024 by Rebekah Brately appeared first on Benzinga. Visit Benzinga to get more great content like this.