By Brooks V., Branch Manager and Guest Blogger
After 14 years in the investment business I can say that in some cases rolling your old 401(k) over into an IRA is a good idea. Why? Well, there are several reasons.
Take Control of Your Retirement Plan
The first is control. You may find it easier to oversee your retirement savings when they’re in an account you manage. If you’re no longer employed by a company, handling account issues through the company representative or the plan administrator can be difficult. As an example, I assisted a client a number of years ago with getting funds out of an old 401(k). It had been 10 years since the client left her employer, and during that time the company had changed hands and the 401(k) had a new plan administrator. The client had also moved and the current plan administrator had no current information on the client. It was difficult for her to get access to her funds. If she had rolled over her 401(k) into an individual retirement account (IRA) soon after she left her former employer, she might have saved herself some trouble.
More Investment Choices
The second reason is the number of investment options. When you rollover your old 401(k) to a Scottrade IRA account you have a wide array of investments to choose from, such as stocks, bonds, options, mutual funds and exchange traded funds (ETFs). Whereas in your old plan you may only have a select number of mutual funds or bonds. It’s nice to have more choices, and with the fees some mutual funds can impose in your old 401(k), you may be able to save yourself some money as well when you roll the account over.
Convenient Access to Your IRA
The third reason is convenience. Having everything in one place can be helpful when managing your retirement savings. Once you get your retirement funds rolled over into an IRA account you can view balances, track contributions or distributions, and even link to other Scottrade accounts, so that you can conveniently access it with one login.
What’s the next step? Contact your local branch and learn how to set up an IRA. We’ll walk you through the rollover process step by step.
What questions do you have about rolling over your 401(k)?
Also of Interest:
- Determine Whether a Traditional or Roth IRA is Better For You
- How to Develop an Investment Strategy that Works Toward Your Retirement Goals
Brooks V. has been with Scottrade since 2008. He has 14 years industry experience and manages a Scottrade branch office in Bradenton, Fla.
Scottrade does not provide tax advice.This material is for informational purposes only. The information is subject to change without notice and should not be construed as a recommendation or investment advice. Please consult your tax or legal advisor for questions concerning your personal tax or financial situation.
Hi all:
I have an Existing IRA that i have been managing well, I also have a 401K from a previous employer that has not been transferred. Can I also get the 100 dollar bonus for the transfer? They dont charge much for fees and has done well in last few years. Looking to help out my long term retirement account. Back a while ago you provided free trades as an incentive as well will those be coming back>?
thanks
What's the minimum required to receive $600 for rolling over an IRA?
Hi Judy,
If you have a 401(k) from and old employer and would like to roll it over to Scottrade, here is what you will need to do:
1. Contact your current Plan Administrator for your old 401(k) to get details and required paperwork to complete the rollover.
2. If you have not already, open a Rollover IRA account online at www.scottrade.com by clicking on Open New Account or by visiting one of our branch offices.
3. Mail completed paperwork to the Plan Administrator to have the funds rolled into your new account.
If you need help, we can assistance to you along the way. Simply call us at 800-619-7283 with any questions.
Best,
Andrew R.
National Service Center
how do I find out about a 401k I left behind at an old employer in 1989
Hi Ed,
You certainly may rollover your 401(k) from a previous employer to a Scottrade self-directed IRA account. Once this is completed, you will have the ability to invest in any U.S. listed securities, as well as a growing number of foreign securities listed on the U.S. or Canadian exchanges. Any dividends earned will be credited directly to your account's cash balance. The funds in your cash balance can be used to purchase additional stock. The commission for buying or selling stock in a Scottrade IRA is a flat $7 for all stocks priced $1 and above.
If you have not already, you will need to open a Rollover IRA with us to receive your retirement assets. You can open this account online at www.scottrade.com by clicking on Open A New Account or by downloading our Traditional IRA Application from our Forms Center and submitting them to your local Scottrade team for processing.
Once the account has been established and an account number provided, the Administrator for your current plan can provide you with their required paperwork to complete the rollover. Mail their completed paperwork to the proper location as defined by the Administrator to have the funds rolled into your new account. If they do not provide the funds to you directly, you can have the Administrator send the check to your local Scottrade team.
We certainly appreciate your interest in Scottrade. We are happy to provide assistance to you along the way. Feel free to contact us at 800-619-7283 with any questions.
Best,
Andrew R.
National Service Center
after i rollover my old company 401k to a Scottrade IRA, can i buy ANY individual stocks or are there limitations? What happens to dividends earned on these stocks? Do dividends sit in a cash fund within the IRA and are they available for me to buy additional stock? Is the fee still $7 for buying/selling stock within the IRA?
Hi Joe,
We are happy to hear that you rolled over your funds to Scottrade. Have you ever visited one of our branches or explored our educational offerings?
The reason why I ask is because a lot of clients have shared with us that they are helpful resources. For instance, reading the information in the Knowledge Center has helped some make better informed investment decisions, and others have found the Scottrade Online Community great because they can find out what other experienced investors are doing with their rollover. Those are just two places you may want to research.
Best,
Suzanne H., Sr. Social Media Specialist.
Hi Don,
We are glad you shared what you experienced at the Kingwood branch and Webster branch on our blog. It is important to us that you receive the same great service no matter what branch you visit. I will let you know that you can change branches at any time if you feel the Kingwood branch would better suit your needs. We are here if you ever change your mind and decide to give us another chance.
Best,
Suzanne H., Sr. Social Media Specialist
I just rolled over my 403b into Scottrade. After 5 years ago, my account was worth more! I figure I can do better than that!