Human Interest - The 401(k) provider for small and medium-sized businesses

Best Rollover IRA

By The Human Interest Team -

There are several different things you can do with your 401(k) when you leave your job. However, for many people, the best choice is to roll your 401(k) into an IRA. Starting the rollover process is fairly simple. Choose a financial institution with the best rollover IRA account benefits and management and make a tax-free direct transfer from your old 401(k) account into your new IRA account. The hardest part of the process is deciding which financial institution has the best rollover IRA for you.  

What Is a Rollover IRA? 

The process of withdrawing cash or assets from one eligible retirement plan, and contributing that money or assets into another eligible retirement plan, is called a rollover. An example would be transferring cash from your employer-sponsored 401(k) to an individually owned IRA that you’ve set up outside of work. When you’re rolling your cash or assets from one retirement account to another, you can maintain the tax-deferred status of your cash or assets. However, you can only maintain the tax-deferred status if you complete the transaction within 60 days.

Rolling your different retirement plans into one account, especially one that you own and control, can provide easier management and increased investment flexibility. 

Advantages of a Rollover IRA 

For some people, leaving their money in a 401(k) might have benefits, like being better protected from creditors or having the ability to take out a 401(k) loan. However, for some people, rolling their employer-sponsored 401(k) into an IRA is the best choice for their retirement money. There are a lot of perks that come with an IRA, some of which include: 

How to Choose Your Rollover IRA Provider 

Before you begin, you’ll want to determine your personal investment style. If you have a do-it-yourself personality, you might prefer to manage your IRA by yourself. If you prefer a hands-off approach, then you would probably want an account manager to handle your IRA for you. 

Once you’ve decided on your investment style, the next step is to look at different banks and brokerage firms and determine which one has the best rollover IRA account for you. You may want to look into online brokerages, robo-advisors, and traditional providers. Whichever one you choose, the criteria to find the best rollover IRA is the same: 

Top Picks for Online Brokers 

If you’re more of a hands-on investor and you want to build and manage your own investment portfolio, then you may want to look for an online broker. Most online brokers allow you to freely pick and choose from a variety of low-cost investments. Here are some of the best online brokers. 

Top Picks for Robo-Advisors  

If you’re not really interested in hand-picking your individual investments, then you’ll want to find a provider who will do it for you. There are lots of providers who will build you a custom portfolio of individual investments and then manage the portfolio for you at a modest price. Another great option is an automated management service, also called a robo-advisor, who will use your preferences to build a personalized portfolio using low-cost funds. A robo-advisor typically has a much lower fee than a conventional provider, and will regularly rebalance your funds to keep you on track with your financial goals. Here are two renown IRA robo-advisors 

If you want to learn more about your retirement options, contact Human Interest to speak with an expert today. 

The Human Interest Team The Human Interest Team

We believe that everyone deserves access to a secure financial future, which is why we make it easy to provide a 401(k) to your employees. Human Interest offers a low-cost 401(k) with automated administration, built-in investment advising, and integration with leading payroll providers.

Small and medium businesses can be prepared, too.

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Human Interest - The 401(k) provider for small and medium-sized businesses

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