TD Ameritrade

401k Rollover

Managing multiple retirement accounts at different institutions can be cumbersome. Consider consolidating your assets with a 401k rollover to an IRA and make managing your retirement easier and more convenient. It only takes 15 minutes to get started.

And if you need step-by-step help with an IRA rollover, a TD Ameritrade representative can help you with the rollover process from start to finish, including contacting your 401k administrator for you, assisting you with the paperwork, and discussing your retirement goals and objectives. Call 800-213-4583 to schedule a phone consultation. You can also download the helpful Rollover Pocket Guide for easy reference.

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Retirement Plan Rollover Choices

Have you changed jobs or are you planning to retire? Use the chart below to help you decide if consolidating your assets into a TD Ameritrade IRA or 401k is best for you or call 800-213-4583 to speak with a Financial Consultant about your specific needs.

Roll over your old 401k into a TDAmeritrade IRA
Advantages
  • Your investments will remain tax-deferred until you withdraw them
  • You will have access to a wide range of investments, including mutual funds, ETFs, stocks, bonds, options and more
  • You will have access to a wide range of tools, resources, and services
  • You may have the flexibility to convert to a Roth IRA
  • You may still have the option to move assets to a future employer's plan later
  • You may be able to take penalty-free withdrawals prior to 59½ in special circumstances (such as higher education expenses, health insurance premiums or a first-time home purchase)
  • Your TD Ameritrade IRA will not incur an annual account maintenance fee
Disadvantages
  • You will not be able to take a loan against your account
  • Any outstanding plan loan balances would need to be repaid prior to rolling over or you may incur income taxes and potentially a 10% tax penalty
  • Your investment activity may incur trading-related expenses, including commissions
  • You may not have access to the exact same investments in an IRA that you had in your plan
  • The level of protection from creditors for assets in an IRA is lower than in a plan
  • If you hold appreciated employer stock in your former employer's plan account, there may be tax consequences. You should consult a tax advisor

Leave the assets in your former employer’s plan
Advantages
  • Your investment plan choices may include low-cost, institutional-class products
  • Your total costs may be lower than other alternatives
  • Your investments will remain tax-deferred until you withdraw them
  • You may be able to take loans against your account
  • You may not have to take any action or complete additional paperwork
  • You may be able to take penalty-free withdrawals if you left your old employer between age 55 and 59
  • Your retirement plan balances may be protected from creditors and legal judgements under federal law
  • You may still be able to roll over to a future employer's plan later
  • You would still have access to investor education, guidance and planning provided to plan participants
  • The investment choices on your plan menu were selected by a plan fiduciary
Disadvantages
  • Your investment choices would be limited to those in the plan
  • Your former employer may pass certain plan administration or recordkeeping fees through to you
  • Even though you would still participate in the plan, you would not be able to contribute any new funds
  • Managing your investments among multiple accounts can be a lot of work

Roll over the assets into a new employer’s plan
Advantages
  • Your total costs may be lower than other alternatives
  • Your investments will remain tax-deferred until you withdraw them
  • You may be able to take loans against your account
  • You may be able to take penalty-free withdrawals if you leave your new employer between age 55 and 59
  • Your retirement plan balances may be protected from creditors and legal judgements under federal law
  • Your plan investment choices may include low-cost, institutional-class products
  • You may have access to investor education, guidance and planning that your new employer provides to plan participants
  • The investment choices on your plan menu were selected by a plan fiduciary
  • If you roll over to a new employer's plan you may not have to take required minimum distributions (RMDs) at age 70½ if you decide to keep working
Disadvantages
  • Your investment choices would be limited to those in the plan
  • Your new employer may pass certain plan administration or recordkeeping fees through to you
  • You may be required to complete paperwork to have your assets moved over
  • If you hold appreciated employer stock in your former employer's plan account, there may be tax consequences. You should consult with a tax advisor.

Take a cash distribution
Advantages
  • Your money (after any taxes and applicable penalties) will be immediately available to you
Disadvantages
  • Your retirement savings will be depleted
  • The amount that you cash out will be subject to mandatory 20% withholding for federal taxes if under age 59½
  • Your distribution will be subject to applicable federal, state and local taxes
  • You may be subject to a 10% penalty if you under the age 59½

Get up to $600* when you
roll over your old 401k   See details

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AdChoices

Market volatility, volume and system availability may delay account access and trade executions.

TD Ameritrade does not provide tax advice.

*Offer valid for one new Individual, Joint or IRA TD Ameritrade account opened by 6/30/2019 and funded within 60 calendar days of account opening with $3,000 or more. To receive $100 bonus, account must be funded with $25,000-$99,999. To receive $300 bonus, account must be funded with $100,000-$249,999. To receive $600 bonus, account must be funded with $250,000 or more. Offer is not valid on tax-exempt trusts, 401k accounts, Keogh plans, profit sharing plan, or money purchase plan. Offer is not transferable and not valid with internal transfers, TD Ameritrade Institutional accounts, accounts managed by TD Ameritrade Investment Management, LLC, current TD Ameritrade accounts or with other offers. Accounts funded with $3,000 or more are eligible for up to 500 commission-free trade internet equity, ETF, or option trades executed within 60 calendar days of account funding. All other trade types are excluded from this offer. Contract, exercise, and assignment fees still apply. No credit will be given for unexecuted trades. Limit one offer per client. Account value of the qualifying account must remain equal to, or greater than, the value after the net deposit was made (minus any losses due to trading or market volatility or margin debit balances) for 12 months, or TD Ameritrade may charge the account for the cost of the offer at its sole discretion. TD Ameritrade reserves the right to restrict or revoke this offer at any time. This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Please allow 3-5 business days for any cash deposits to post to account. Taxes related to TD Ameritrade offers are your responsibility. All promotional items and cash received during the calendar year will be included on your consolidated Form 1099. Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules. (Offer Code: 220)

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be contrary to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

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