How to Rollover Your IRA Online

Written By Mary Beth Eastman
Last updated December 8, 2020

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July 11, 2019

Simple. Thrifty. Living.

Rolling over a 401(k) into an IRA has become easier than ever. In fact, you can often complete most of the process’s steps online.

Follow these steps to find an online IRA provider and move your account easily.

You have plenty of options when choosing an online IRA provider. Make sure you choose one that fits your needs well. To get an idea of the basics, here are some Roth IRA basics to get you started. Roths are popular IRA options, but they’re not for everyone.

If you want a hands-off way to manage your IRA, choose a company that uses a robo-advisor to make investment choices for you. Some top options include:

If you want to take an active role in your IRA’s management, then look for a provider with reliable customer service and no account fees. Good options to consider include:

Your new rollover IRA provider will give you specific instructions that tell you how to send funds from your 401(k) to your new IRA. Exact directions will vary slightly from company to company, but you can expect a variation on these instructions:

Contact Your 401(k) Account’s Administrator

Contact your employer to empty your 401(k). Some institutions will insist on sending you a paper check. Others will deposit the funds into your new account electronically.

Fill Out Any Required Paperwork

Your 401(k) plan administrator will want you to fill out some paperwork verifying that you want to empty your account and start a rollover IRA. Simply fill this out and sign where required.

Make Sure You Choose a Direct Rollover IRA

Moving the money from your 401(k) into an online rollover IRA means that you don’t pay any taxes. If you choose an indirect rollover IRA, however, the 401(k) plan’s administrator will withhold 20% of the amount for tax purposes.

Make sure you choose a direct online rollover IRA so you can put the entire amount into your new account.

An online IRA rollover can give you access to more investment options. Putting the money into an IRA may also mean that you pay lower fees.

Now that you can complete most or all of the process online, you don’t have any reason to delay. Rollover your old account today so you can start reaping the benefits.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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