March 23, 2024

IRA Rollover Bonus

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Get more from your 401(k) transfer. Take advantage of these IRA rollover bonuses and give your retirement savings an extra boost.

Considering rolling over your 401(k) into an IRA? Don't make the switch without gaining something in return.

Many stockbrokers, IRA companies, and investment firms offer bonuses when you transfer your retirement assets to them. It's a golden opportunity to sweeten your retirement pot.

Check out these financial institutions that are practically begging you to save with them.


How familiar are you with IRA rollover bonuses?

Gold IRA Rollover Bonuses

Is your priority preserving wealth? Consider a gold IRA. This lets you roll over your 401k funds into a special self-directed IRA where you can purchase actual physical gold.

Gold can help diversify your portfolio, hedge against stock market volatility, and preserve wealth as you're nearing retirement.

These gold IRAs often offer rollover bonuses:

What is an IRA Rollover Bonus?

An IRA rollover bonus is offered by stockbrokers and IRA companies to incentivize customers to transfer funds from an employer-sponsored retirement plan. Usually, the more you transfer, the bigger the bonus.

It's usually a cash bonus, but sometimes can also be in the form of other assets. You have to fulfill certain criteria to earn the bonus, which may include:

  • Roll over a certain minimum amount
  • Complete the rollover within a specific timeframe
  • Keep the funds in your new IRA for a certain time

By rolling over your retirement funds to them, you're likely to be using the broker's services for a lifetime. So they're happy to give a generous bonus to win you over a customer.

Some 401(k) plans may charge a transfer fee for moving your funds. The IRA rollover bonus also helps to cover that fee.

What accounts can you rollover to an IRA?
In most cases, you can roll over a 401(k), 403(b), 457 or another employer-sponsored retirement plan.[1]

What's your main concern with an IRA rollover?

How to Earn an IRA Rollover Bonus

  1. Open an IRA with the new financial institution. Make sure to use a coupon code for the rollover promotion if there is one.
  2. Contact your 401(k) plan administrator and initiate a rollover request to the new IRA provider. In many cases, the new provider will even help with it.
  3. Check that the funds have been delivered and deposited to the new provider (this may take up to 2 weeks).
  4. Wait for your new IRA provider to credit your bonus. This may take several weeks to months, depending on terms.
  5. Keep your new IRA account open for the specified duration to avoid forfeiting the bonus.

Why Roll Over to an IRA?

Here are a few good reasons to ditch the 401(k) and roll over to an IRA:

  • You can consolidate into one IRA.
    Got a few 401(k)s from multiple past jobs? You can consolidate your nest egg by rolling them into one IRA account. This lets you streamline your finances in one place.

    Most financial institutions will let you roll over from multiple employer retirement accounts, and reward you the bonus based on the aggregate rollover amount.

  • You have more control over your investments.
    In a 401(k), you can only choose from a small select list of investments chosen by your employer. Typically, you can only invest in funds, and not individual stocks. But if you roll over to an IRA, you're free to choose whatever investments you want.

  • There are less fees.
    Many 401(k)s have hidden fees that you may not even know about - administrative fees, annual fees, high fund expenses. In an IRA, you'll have more control and can choose investments with less fees.

  • You can invest in alternative assets.
    You can even roll over a portion of your 401(k) into a self-directed IRA. This will allow you to invest in alternative assets, like physical gold or crypto. You can choose investments that match your goals.

Why are you considering moving your funds from a 401(k) to an IRA?

FAQs

Does rolling over a 401(k) affect taxes?
When done as a direct rollover, you will not incur tax payments and penalties. This is when your funds are directly transferred from your 401(k) to the new IRA without withdrawing them. Your retirement funds continue to grow tax-deferred.[2]

Can I roll over my 401(k) while still employed?
The general rule is that you cannot roll over a 401(k) until you leave the job or retire. But some companies may allow in-service rollovers, where you can move your 401k funds to an IRA while still working with them.

There will likely be rules. Typically, you have to be a certain age (usually 59-1/2) and must have had the account for a certain length of time.[3]

References

  1. ^ Internal Revenue Service. Rollover Chart, Retrieved 03/13/2024
  2. ^ Internal Revenue Service. Rollovers of retirement plan and IRA distributions, Retrieved 03/13/2024
  3. ^ Internal Revenue Service. IRA FAQs - Distributions (Withdrawals), Retrieved 03/13/2024

Anna G is a contributing writer at CreditDonkey, a credit card comparison and reviews website. Write to Anna G at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.


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