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We evaluated rollover IRA accounts from brokerage firms that are available in all 50 states, ultimately only featuring those that fit our strict criteria. To be included on this list, providers must:
Have at least $1 trillion in assets under management if offering a self-directed account.
Have at least $20 billion in assets under management if offering a robo-advisor account.
Understanding Our Methodology
To choose the best rollover IRA providers in 2023, Annuity.org’s independent editorial team carefully considered rollover IRA offerings from the top brokerage firms in the country.
Annuity.org uses a strict and fact-based methodology to determine which companies qualify for our rankings. To be considered, a provider must offer an IRA account specifically designed for rolling over an existing retirement plan.
We also considered other factors, including account minimums, fees, tools and resources available to investors and the variety of investment options offered.
Learn more about our broader Editorial Guidelines.
Rollover IRAs are a valuable financial planning tool that allow individuals to transfer funds from an existing retirement account into a new IRA. Rollover IRAs maintain the tax-advantaged status of the original account and allow the transferred funds to continue to grow without immediate taxation.
Rollover IRAs generally occur after a ‘triggering’ event. Two common examples are a change of employers and retirement, when retirees want more control over their retirement savings plan assets.
This article thoroughly reviews the best rollover IRA providers for different investor needs.
Editor’s Choice: Best Overall
Best Self-Directed: Fidelity Investments
Fidelity Investments is one of the largest financial services firms in the nation with over $3 trillion in assets under management. Fidelity serves more than 40 million individual investors in America and nine other countries.
Pros & Cons
- No account or advisory fees
- Over 10,000 fund choices, including index funds with no expense ratio
- Robust planning tools, calculators, reporting features and other resources
- Does not offer futures trading
Best Robo-Advisor: Wealthfront
Wealthfront is an automated investment service company, commonly referred to as a “robo-advisor.” Wealthfront’s mission is to make investing easier, better and more accessible by offering software-based financial planning solutions designed to automate investing.
Pros & Cons
- Low account minimum
- Hundreds of funds to choose from, including crypto exposure
- Can choose portfolios designed for socially conscious investing
- 0.25% management fee
- Technical support only, no investment or financial planning advice available
Best for No Fees
Best Self-Directed: Charles Schwab
In the fifty years since its founding, Charles Schwab has built a reputation for excellence as a brokerage firm. The corporation was named one of the Best Online Brokers of 2022 and Most Trusted Financial Companies of 2022 by Investor’s Business Daily.
Pros & Cons
- No account opening or maintenance fees
- $0 commission on stock, options and ETF trades
- Over 2,000 ETFs and 7,000 mutual funds to choose from
- Award-winning 24/7 customer service support
- No crypto assets to invest in
- Higher margin rates
Best Robo-Advisor: Schwab Intelligent Portfolios®
Schwab Intelligent Portfolios® is the robo-advising subsidiary of Charles Schwab. Schwab’s robo-advisor selects ETFs for investors’ portfolios based on how the investor answers questions about their goals, risk tolerance and investment timeline.
Pros & Cons
- No advisory or management fees
- Three investment strategies and six risk profiles to choose from
- 24/7 live support
- $5,000 account minimum
- Automatic tax-loss harvesting only for clients with balances of $50,000 or more
Best for Low-Risk Portfolios
Best Self-Directed: Vanguard
Founded by legendary business magnate John Bogle, Vanguard stands as the largest investment firm in the nation today. The company is best known for its selection of low-cost index and mutual funds.
Pros & Cons
- Low average expense ratio (0.09%)
- $0 commission for stocks, ETFs and Vanguard mutual funds
- 160 Vanguard mutual funds have no transaction fee
- Over 3,000 mutual funds to choose from
- Most Vanguard mutual funds require a minimum investment of $3,000
- Trading platform lacks tools and interactive features
- $20 annual account fee, can be waived by signing up for e-delivery of account updates
Best Robo-Advisor: Vanguard Digital Advisor
Vanguard Digital Advisor is a robo-advisor offered by the Vanguard Group. Vanguard Digital Advisor builds custom portfolios based on investors’ current savings, risk assessment and investment timeline.
Pros & Cons
- Customized investment portfolios of mutual funds and ETFs
- Automatically adjusts asset mix for tax efficiencies and financial goals
- No advisory fees for first 90 days
- $3,000 account minimum
- 0.20% advisory fee
- Cannot have non-Vanguard mutual funds or individual bonds in portfolio
Best for Hands-On Investors
TD Ameritrade is a brokerage providing online stock trading, investing and retirement planning services to over 11 million customers. The company has since been acquired and is currently being integrated into Charles Schwab.
Pros & Cons
- $0 commission for ETFs, stocks and mutual funds
- Wide variety of investment options including 13,000+ mutual funds
- Interactive tools, third-party research resources, personalized reporting and analysis
- All accounts will move to Charles Schwab after acquisition
Best for Varied Investment Options
E*TRADE is an online brokerage firm that pioneered online investment trading for consumers in the early 1980s. The global financial services firm Morgan Stanley acquired E*TRADE in 2020.
Pros & Cons
- No account fees and no commissions on stocks, ETFs or mutual funds
- Over 6,500 mutual funds and 50,000+ bond and CD offerings
- $1 per bond charge for online secondary market trades ($10 minimum)
- $0.50 to $0.65 charge per contract for options trading
Best for Integrating With Your Bank
Merrill Edge is an online investment trading platform owned by Bank of America. Merrill’s offerings include self-directed and guided investment accounts including IRAs.
Pros & Cons
- No annual account fees
- No commission on stock, ETF or options trades
- Can connect to a linked Bank of America account
- Not as wide a variety of investment options as other brokerages
How Does a Rollover IRA Work?
A rollover IRA works by moving the funds from an employer-sponsored retirement plan into an individual retirement account, also known as an IRA. To be eligible for a rollover, the owner of the retirement plan must experience a distribution event; most of the time, this means that they are no longer employed at the company that sponsored their existing retirement plan.
A retirement plan can be rolled over into a traditional or a Roth IRA. The annual contribution and income limits for an IRA do not apply to rollover IRAs. You can roll over the entire value of your 401(k) or other employer-sponsored retirement plan into a rollover IRA in the same year. You can even contribute to a separate IRA that year up to the annual contribution limit ($6,500 in 2023).
The rules for withdrawals and required minimum distributions (RMDs) apply to rollover IRAs the same as other IRAs. For all IRAs, you’ll be subject to income taxes and a penalty if you withdraw funds from the account before you turn 59 1/2. Once you turn 73, you must withdraw a certain amount of money from your rollover IRA and any other IRAs each year.
Who Is a Rollover IRA Best Suited For?
A rollover IRA is best suited for someone who wants to move control over their retirement plan from their former employer to themselves. Usually, this means that you’ve left a job that has a 401(k) or similar tax-deferred plan, such as a 403(b), 457(b) or Thrift Savings Plan (TSP).
You might also consider a rollover IRA if an old employer goes out of business, dissolving the retirement plan you had with them. On a similar note, some people turn to rollover IRAs if their current IRA provider shuts down.
Finally, some people choose rollover IRAs to simplify their retirement savings. Even if you have a good relationship with a former employer, sometimes it’s just easier to have all your retirement savings in one place. By rolling over your old account into an IRA, you can continue contributing to that same account year after year.
Frequently Asked Questions About Rollover IRAs
Rollover IRAs typically have the same investment options as other IRAs, including stocks, bonds, mutual funds and ETFs.
Common rollover IRA fees include expense ratios, transaction fees and management or advisory fees.
You can roll over employer-sponsored retirement plans, such as a 401(k) or a 403(b), into a rollover IRA.