Rollover IRA
Take control of your retirement savings by moving your old 401(k) into a rollover IRA.
Schwab rollover IRAs at a glance
A rollover IRA can help you keep your retirement savings working for you when you leave a job. With a Schwab rollover IRA, you can move assets from an old 401(k) into an IRA without paying taxes or penalties.
Schwab Rollover Consultants are available to walk you through the process step-by-step at no cost, and there are no fees to open or maintain the account. You'll also get access to a wide range of investment choices, including stocks, ETFs, mutual funds, bonds, and more—all with $0 online stock and ETF commissions.
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What is a rollover IRA?
A rollover IRA is an individual retirement account that allows you to move money from a former employer retirement plan into a traditional IRA or Roth IRA. Rollover IRAs are often used to consolidate multiple retirement savings accounts into a single account.
What are the benefits of a rollover IRA?
Tax‑deferred growth without immediate taxes
You can preserve the tax-deferred status of your retirement assets, such as a 401(k), without paying current taxes or early withdrawal penalties at the time of transfer.
No annual account or maintenance fees
Schwab IRAs have no account opening or maintenance fees, regardless of balance or trading activity. Other account fees, fund expenses, and brokerage commissions may apply.1
Broader investment options
Take advantage of an array of investment choices—including stocks, bonds, CDs, ETFs, and mutual funds—that may meet your retirement goals, investment objectives, and risk tolerance.
Options for a former employer retirement plan, including rollovers
If you're deciding what to do with a previous employer-sponsored retirement plan, such as a 401(k), it is important to review all options. Before starting a rollover IRA, consider:
- Leaving your money in your former employer's 401(k) if your former employer permits it.
- Rolling over your 401(k) to a new employer-sponsored retirement plan if this option is available.
- Rolling over your 401(k) to an IRA, which may provide broader investment flexibility.
- Taking a cash distribution, which could result in taxes and a 10% penalty.
Tools, education, and support for your rollover IRA
Retirement tools and resources
Schwab offers planning calculators and more to help you manage your future.
Insights and education
Stay informed with the latest market commentary, insights, and investing ideas from Schwab experts.
Satisfaction guarantee
At Schwab, our commitment to your satisfaction is backed by a guarantee. If for any reason you're not completely satisfied, we'll refund your fee or commission and work with you to make things right.2
Fees and commissions
Regardless of your account balance or how often you trade, you can open an account with a $0 minimum deposit plus get $0 online listed equity trade commissions.
How to roll over your old 401(k) into a Schwab IRA
Follow our three-step process to roll over your old 401(k) or other employer-sponsored account into a Schwab IRA and take control of your retirement savings.
Open a Schwab IRA
- Apply for an IRA to get started. If you already have an IRA, you can go right to Step 2.
- You may have both pre-tax traditional and post-tax Roth contributions that could require two new IRA accounts to be opened. Check with your plan's administrator or a tax advisor to understand your source of funds.
Fund your account with a rollover
- Complete any forms required by your former employer.
- Decide how you want your retirement assets distributed.
- Ask your employer to deposit your funds directly into your Schwab 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 IRA account number and ask them to include it on the check, to avoid potential hold time.
- Instruct your employer to mail the check to: Charles Schwab & Co., Inc., P.O. Box 2339, Omaha, NE 68103
- If your employer made your rollover distribution check payable to you rather than to Schwab, see the common questions at the bottom of this page for next steps.
Invest your rollover funds
- Contact us for guidance on how to make the most of your retirement savings.
- Select from a wide range of investments.
Compare IRA options
If you're considering rolling over assets from a former employer's retirement plan, it can help to understand how different types of IRA accounts work and how contribution and withdrawal rules may apply.
Interested in a traditional IRA rollover? Learn more about contribution limits and withdrawal rules.
Interested in a Roth IRA rollover? Learn more about contribution limits and withdrawal rules.
Not sure which IRA may fit your situation? Compare traditional IRAs and Roth IRAs to explore how their tax treatment, eligibility, and withdrawal rules differ.
Common questions about rollover IRAs
Schwab will send you your new account number as soon as your application is completed and approved. You can use your account number to log in and manage your account.
Choose from stocks, bonds, exchange-traded funds (ETFs), mutual funds, CDs, and more. Schwab also offers professional portfolio management solutions. As a Schwab client, you can have a complimentary consultation with a Schwab investment professional who can help you decide which investments are right for you. Just give us a call at 866-855-5635. We're here and happy to help.
A rollover is when you move funds from one eligible retirement plan account to another, such as from a 401(k) to a rollover IRA. Rollover distributions are reported to the IRS and may be subject to federal income tax withholding.
A transfer of assets is when you instruct your retirement account provider to move funds directly between two accounts of the same type, such as from one traditional IRA to another traditional IRA. Transfers can take place as often as you like. They are not reported to the IRS because you never take possession of your money.
Yes, in many cases you can roll over eligible assets from a former employer-sponsored retirement plan such as a 401(k), 403(b), or governmental 457(b) into a traditional IRA. Moving those assets to a traditional IRA can allow you to maintain their tax-deferred status while giving you access to a broad range of investment options. Before completing a rollover, it's important to review your plan's rules and consider factors such as fees, investment choices, and potential tax implications.
If you have Roth assets from a previous employer, such as a Roth 401(k), or you made post-tax contributions to a non-Roth plan, you can typically roll them into a Roth IRA. Unlike traditional IRAs, Roth IRAs have income limits which may affect your ability to contribute after your rollover is completed. If you have both pre-tax and post-tax contributions in your former employer plan, you may be required to open both a Roth IRA and a traditional IRA. Moving non-Roth (pre-tax) assets to a Roth IRA is called a Roth conversion and requires paying taxes that were previously deferred.
Yes, you can withdraw money from a rollover IRA at any time, including during the rollover process. However, withdrawals are generally subject to income taxes, and if you are under age 59½, an additional 10% early withdrawal penalty may apply unless an exception is met. Required minimum distributions (RMDs) may also apply beginning at the applicable age. Because withdrawals can affect your taxes and long-term retirement savings, it may be helpful to review the rules before taking money out of your account.
Eligible employer-sponsored retirement plans are those that you receive qualifying distributions from and include 401(k) plans, 403(b) plans, profit-sharing plans, money purchase plans, and Keoghs/Qualified Retirement Plans (QRPs). Plans that may not be eligible include employee stock ownership plans (ESOPs) and defined benefit plans. You may be allowed to roll over after-tax dollars and governmental 457(b) qualifying distributions. Contact your plan administrator(s) to find out if your particular plan is eligible for a rollover.
With a direct rollover from an employer-sponsored plan to an IRA, the administrator of your plan delivers your distribution directly to the financial institution where your rollover IRA is held. Since you never actually take possession of your assets, there is no mandatory 20% federal tax withholding.
With an indirect rollover, you do receive the assets from your previous employer retirement plan and roll over either all or a portion of the assets into another eligible plan within 60 days of receiving the distribution. Your employer may be required to withhold 20% for federal income tax. However, you can recover the deduction if you roll over the amount you received from your former employer plus the 20% that was deducted. You will receive the refund in the form of a tax credit when you file your tax return.
If your employer sends you a rollover distribution check made payable to you, you can deposit it directly into your rollover IRA. Be sure to write your Schwab Rollover IRA account number on the check and deposit it within 60 days to avoid taxes and penalties. Your plan administrator may have withheld 20% for federal income tax. You can recover the deduction if you roll over the amount you received from your previous employer plus the 20% that was deducted. Please see IRS Publication 590-B or talk with your tax advisor for more details.
Call a Schwab Rollover Consultant at 866-855-5635 and we will work with your former plan administrator to make sure your retirement savings are rolled over properly. Please talk with your tax advisor for details about your specific situation.
Yes, you are responsible for tracking your tax basis. This helps you comply with IRS rules, avoid double taxes on post-tax contributions, and choose the right account for your savings. If you have both types of contributions in your old 401(k) or other former employer plan and want to roll them over, you may be required to open both a traditional IRA and a Roth IRA.
Rollovers are reported to the IRS on Form 1099-R (distributed amount) and Form 5498 (rollover amount). If you rolled over your old 401(k) or another former employer plan into a Schwab IRA, you will receive these completed forms in the mail or can access them on the Schwab website. The copy of Form 5498 that you receive is for your records and does not need to be filed with your taxes.
Yes. A rollover IRA allows retirement assets to remain in a tax-advantaged account, with taxes typically deferred until withdrawals are taken.
If a rollover distribution is paid to you, you usually have 60 days to deposit the funds into an eligible IRA to avoid taxes and penalties. Direct rollovers are not subject to this rule.
Cash held at Schwab Bank is FDIC-insured up to applicable limits. Investments held in a rollover IRA are not FDIC-insured and may lose value.
Charles Schwab is recognized as Best Online Broker for IRA Investors by NerdWallet 2026. Schwab offers $0 to open and maintain, dedicated Rollover Consultants, 400+ U.S. branches for in-person help, and 4,000+ no transaction-fee mutual funds. Fidelity and Vanguard offer fewer no-transaction-fee mutual funds and don't have a dedicated Rollover Consultant phone team.
Schwab rollover IRAs cost $0 to open and have no minimum deposit, no annual maintenance fees, and $0 online listed equity trade commissions.
You only pay fees for transactions you make in the account, such as trading stocks, or for investments you hold in the account, such as operating expenses on mutual funds. See the Charles Schwab Pricing Guide for Individual Investors and its amendments for comprehensive details on fees.
Schwab's Rollover Consultants are also available at no cost to walk you through the process at 866-855-5635.
A Schwab Rollover Consultant can guide you through the process of transferring your retirement savings to a Schwab IRA. They provide personalized support, answer your questions, and ensure a smooth, tax-efficient rollover.
The time it takes to complete a Schwab rollover varies but typically takes a few weeks. The exact duration depends on your current plan provider and the type of account being rolled over.
Yes. After age 59½, you can roll over your retirement savings to a Schwab IRA without penalties. This can provide more control over your investments and retirement planning.
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