There are numerous reasons people choose to transfer and/or rollover their retirement account to a self-directed IRA. The main reason is to protect their savings from a volatile stock market or unpredictable changes in the economy. By diversifying their investments, they have a greater opportunity to stay on track with their retirement goals.
Self-directed IRAs are also known to perform much better than stocks and bonds. A recent examination of self-directed investments held at IRAR suggests that investments held for 3 years had an ROI of over 23%. This is why most investors are self-directing their retirement.
Although both rollovers and transfers allow you to move your retirement savings from one financial institution to another, the process for each is different, and each have different rules.
A 401(k) rollover occurs when you move retirement funds from an employer-sponsored plan to an IRA— this is why it's also called a Rollover IRA. This option is typically chosen when an employee leaves a job and is no longer contributing to the employer-sponsored retirement plan.
A Transfer is when you move your IRA to another IRA at a different institution. In the case of a transfer, funds or assets are sent between institutions, from the previous custodian or trust company to the new one. This is not only the quickest, but also the best method of moving your IRA to a self-directed IRA.
IRA-to-IRA transfers are easy and the best way to move your retirement savings from one custodian to another. For example, you would do a transfer when moving an IRA from broker dealers like Fidelity, Schwab, Vanguard, TD Ameritrade, etc. to IRAR.
Transfers are initiated at the company where you want to move the IRA. For example, if you wish to move your IRA to IRAR:
You can transfer as much as you want or only the portion of your account you wish to invest in alternative assets— investment options typically not available or allowed at your current provider such as real estate.
Leaving your job shouldn't mean leaving your retirement on hold. Consider a 401k rollover, a strategic move to consolidate your retirement savings and keep them growing tax-advantaged. Whether you're switching employers or seeking wider investment options, rolling over your 401k to a self-directed IRA unlocks flexibility and control.
Take charge of your retirement journey – download the guide below to learn how to rollover a 401(k) to a self-directed IRA!
An IRA provider may charge fees when money is being put into a new IRA or taken out of an old IRA or 401(k). Here are a few types of fees to look out for when choosing your IRA provider based on fee structures.
Transferring money by wire will usually result in a fee charged on both ends, by the sending and receiving institution. Understand your custodians' fee schedules.
Custodial fees are usually a type of account maintenance fee. Your IRA custodian may charge them monthly or annually.
In most cases, there are fees charged for transferring your 401(k) to a newly opened, tax-advantaged retirement account with a different IRA custodian.
The IRS does not determine rollover or transfer fees. Instead, this is determined by your IRA provider. That’s why selecting the right rollover IRA provider is essential to keep fees minimal. Overall, your IRA provider should support you by providing reduced fees and supporting your financial growth.
A rollover IRA is when you transfer funds, assets, or retirement savings from an employer-sponsored plan such as a 401(k) into an IRA. This can be done directly from one IRA custodian to another. This movement of retirement savings is frequently done when you leave a job or retire.
A rollover IRA is usually the movement of and employer-sponsored plan like a 401(k) to a Traditional IRA. However, if the plan has a Roth IRA component, the Roth portion would be rollover to a Roth IRA. In this case, the 401(k) would be rolled over to two different IRA accounts, a Traditional IRA and a Roth IRA.
Yes. You can Rollover a 401(k) to a Roth IRA but, it requires an additional step. First, your rollover would go into a Traditional IRA. Then, you would need to convert the Traditional IRA to a Roth IRA.
You can transfer a 401(k) to an IRA if you have left a job. First, open or establish an IRA at IRAR and complete our Rollover Certification Form. Then, contact your plan administrator and request the forms that you need to complete to move the plan assets or retirement savings to the self-directed IRA. The transfer of accounts can be done from one custodian to the other.
To transfer an IRA from one institution to another, you must open an IRA account where you are moving the old IRA. First, complete an IRAR New Account Application and Transfer Form. You will submit these with a copy of your ID and an account balance or statement report for the old IRA. IRAR will send the request to your current custodian to begin the process and get the account transferred over.
Although both rollovers and transfers allow you to move your retirement savings from one financial institution to another, the process for each is different, and each have different rules. A rollover occurs when you move retirement funds from an employer-sponsored plan (like a 401k) to an IRA. A transfer occurs when you move one IRA to another IRA.