How it works.
Step 1–Open your Schwab Rollover IRA. Apply online or call 866-855-9095 to have a Schwab Rollover Consultant handle the details for you.
Step 2–Fund your account:
- Contact your former employer's plan administrator and tell them you want a direct rollover of your plan assets.
- Complete any forms required.
- Decide how you want your retirement assets distributed.
- Ask your former employer to deposit your funds directly into your Schwab Rollover IRA.
- To prevent funds from being taxed, the check should be made payable to "Charles Schwab & Co., Inc., FBO (Your Name)." Give your employer your Schwab Rollover IRA account number and ask them to include it on the check.
- Instruct your employer to mail the check to: Charles Schwab & Co., Inc., P.O. Box 628291, Orlando, FL 32862-8291.
If your employer made your rollover distribution check payable to you rather than to Schwab, see our Rollover IRA FAQs to find out what to do.
Step 3–Invest your funds.We can help you select from a wide range of investments to make the most of your retirement savings.
A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options, which may include but not be limited to keeping your assets in your former employer's plan, rolling over assets to a new employer's plan, or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to making a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment-related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your circumstances. For more information on your available options, see schwab.com/rolloveroptions.
What is a Rollover IRA?
A Rollover IRA is an account that allows you to move your assets from a qualified, employer-sponsored retirement plan (such as a 401(k)) by "rolling" them into an IRA. An IRA rollover is one option for preserving the tax-deferred status of your retirement assets, meaning you can avoid current taxes and early withdrawal penalties on payouts you receive from your employer's retirement plan when you change jobs or retire.
How do I roll over my 401(k) to an IRA?
To open a Rollover IRA on your own, you can review the How It Works section above, or call 866-855-9095 and our team of Rollover Consultants will help you take the next step. They will not only assist in the process by working with your former plan's administrator, but also answer any questions you may have and help you determine if a Rollover IRA is appropriate for you.
What are my 401(k) rollover options?
There are five 401(k) rollover options to consider when you've left your company, when you retire, or when you've got one or more old 401(k)s:
- Take no action and leave assets in the previous employer's plan,
- Roll assets into a new employer's plan,
- Roll assets into a Traditional IRA,
- Roll assets into a Roth IRA, or
- Receive a cash distribution.
Each option has its own advantages and implications to consider, depending on your current situation and personal financial goals. See schwab.com/rolloveroptions for more complete information.
Understanding Rollover IRAs
Need more information? Here are some additional resources to help you make an informed decision about your 401(k) rollover.
If you'd prefer to make some calculations about your current financial situation before selecting a Rollover IRA, check out these helpful tools.
What clients think about our Individual Retirement Accounts (IRAs):
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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.
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Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Unlike mutual funds, shares of ETFs are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
1. See the Charles Schwab Pricing Guide for Individual Investors (the “Guide”) and any amendments to the Guide for comprehensive details on fees.
2. The $1,000 minimum required to open an account is waived if you set up an automatic monthly transfer of $100 through direct deposit or Schwab MoneyLink® or open a Schwab Bank High Yield Investor Checking® account linked to your brokerage account.
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Schwab ETFs are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Charles Schwab & Co., Inc. Learn more at Schwab ETFs.
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Trades in no-load mutual funds available through the Mutual Fund OneSource service (including Schwab Funds), as well as certain other funds, are available without transaction fees when placed through Schwab.com or our automated phone channels. For each of these trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds.
Charles Schwab & Co., Inc., member SIPC, receives remuneration from fund companies participating in the Mutual Fund OneSource service for recordkeeping and shareholder services and other administrative services. Schwab also may receive remuneration from transaction fee fund companies for certain administrative services.
6. The consultation is complimentary, although the implementation of any recommendations made during the consultation may result in trade commissions or other fees, charges, or expenses. The retirement consultation is available only to clients with at least $25,000 in assets at Schwab or prospects with at least $25,000 in assets available to bring to Schwab. Individualized recommendations are available only to Schwab clients and are limited to assets held in a Schwab retail brokerage account. Information provided to prospects, or pertaining to assets held outside of Schwab, as part of the consultation are examples of the kinds of recommendations available on assets held at Schwab; these examples do not constitute recommendations, solicitations or investment advice.