Rollover IRAs can be a great way to consolidate retirement plans. They generally have low fees and can earn you more than you would get from a savings account.
Like IRAs themselves, IRA rollover promotions come in different shapes and sizes. Some might offer lower or no fees, while others offer straight-up cash or free trades.
In this article, we will take a look at some of the best rollover IRA promotions before answering some frequently asked questions about IRAs and IRA rollovers, including some alternatives you might want to consider.
8 Best IRA Rollover Promotions
These are the best IRA rollover promotions available today, listed in no particular order:
|J.P. Morgan Self-Directed Investing||up to $700 + $100 BankBonus Exclusive||December 31, 2023||
|Acorns Acorns Invest [Referral Program]||$400||December 9, 2023||
|Fidelity Fidelity Bloom®||$100||December 11, 2023||
1. Charles Schwab
When opening a new account at Charles Schwab, including an IRA, you can get as much as $1,000 in bonus cash. You’ll need to jump through a few hoops, so make sure to prepare yourself in advance.
A friend must first send you a referral link to qualify for the bonus. Once you receive the link, you will need to call Schwab to enroll you in the offer.
You will need to make sure you fund your account within 45 days. The minimum deposit amount is $25,000, which will earn you $100.
The promotion has a tiered system as follows:
- Deposit between $25,000 and $49,000 to earn $100
- Deposit between $50,000 and $99,999 to earn $300
- Deposit between $100,000 and $499,999 to earn $500
- Deposit $500,000 or more to earn $1,000
The bonus will be deposited to your account within a week after the 45 days elapse. Once in, you get access to online tools and resources, as well as $0 online listed equity trades.
E*Trade is offering new customers opening a retirement account a cash bonus of up to $3,000. The cash bonus amount will depend on the deposit you make within the first 60 days of opening your account.
To avail yourself of this offer, you need to open not more than one account during the promotion period, using the promo code REWARD22.
As mentioned earlier, the promotion runs on a tiered system with the actual bonus amount depending on the value of deposits made in the first 60 days of account opening. The tiered system is as follows:
- Deposit between $10,000 and $19,999 to earn $50
- Deposit between $20,000 and $49,999 to earn $100
- Deposit between $50,000 and $99,999 to earn $200
- Deposit between $100,000 and $199,999 to earn $300
- Deposit between $200,000 and $499,999 to earn $600
- Deposit between $500,000 and $999,999 to earn $1,200
- Deposit between $1,000,000 and $1,499,999 to earn $2,500
- Deposit $1,500,000 or more to earn $3,500
The promotion includes several other terms and conditions. For example, you can’t withdraw your deposited funds for 60 days to get the total bonus amount.
On the bright side, you do not need to receive a referral link, so you can still get the bonus even if you don’t know anyone with an E*Trade account.
3. Merrill Edge
Merrill Edge has a promotion that can get you $600 when opening a new Merrill Edge Self-Directed account, including rollover IRAs. The promotion’s fine print mentions that you may also be eligible for a different or even better offer. As such, if you are leaning towards Merrill Edge, you might want to give them a call and ask about this.
Either way, the promotion on offer uses a tiered system based on qualifying net new asset balance. Assets (read deposits) must hit the account within 45 days of opening. Cash rewards are as follows:
- Deposit between $20,000 and $49,999 to earn $100
- Deposit between $50,000 and $99,999 to earn $150
- Deposit between $100,000 and $199,999 to earn $250
- Deposit $200,000 or more to earn $600
Funds must be held in the account for 90 days – which shouldn’t be a problem since this is a retirement account. Once the 90 days elapse, the funds will be deposited into your IRA within two weeks.
4. TD Ameritrade
TD Ameritrade offers rollover IRAs that include a wide range of investments – allowing you to grow your money the way you want to. Furthermore, TD Ameritrade rollover IRAs include access to tools, resources, and services to help you make sure you stay on top of things at all times.
Unfortunately, TD Ameritrade is not running any special promotions at the moment. But they do offer a free goal planning session, and you can also use their 401k fee analyzer tool to help you understand if a rollover IRA is the right step for you.
One thing worth noting is that TD Ameritrade has run promotions in the past and may very well do so again in the future. As such, if you’re considering rolling over to TD Ameritrade, it is always worth checking if they’re running any promotions at that time.
For reference, their last promotion offered a cash bonus that goes all the way up to $2,500. The thresholds were set as follows:
- Deposit between $250,000 to $499,999.99 to earn $350
- Deposit between $500,000 to $999,999.99 to earn $700
- Deposit between $1,000,000 to $1,999,999.99 to earn $1,500
- Deposit $2,000,000 or more to earn $2,500
Online stock, options, and ETF trades come with $0 commissions, while option contracts will set you back $0.65 a pop.
If you get stuck at any point in the process, they also have a team of rollover specialists who’ll help you every step of the way – even getting in touch with your old provider to request a funds transfer.
Vanguard offers several IRAs, including rollover IRA specifically designed to roll over 401(k) and 403(b) from a previous employer’s plan.
They offer easy-to-follow step-by-step instructions on opening this type of IRA, including where to get important documents such as the letter of acceptance.
Accounts come with a wide range of investment options that often surpass those offered by the employer’s plan – giving you a more considerable degree of control over how your money is invested. 75% of their funds have also performed better than their peer averages over ten years.
Unfortunately, Vanguard is not running any promotions at this time, but if you like what they have to offer, don’t let this deter you.
Keep in mind that promotions are limited-time, and they might have something on offer at the time you roll over your account.
6. Ally Invest
Ally Invest offers rollover IRAs with a bonus cash promotion that is more accessible. While the total bonus amount requires a more substantial transfer, the bonus tiers are set up in such a way that even if you transfer $10,000, you’ll still get something.
Ally Invest is accessible to a broader audience, and rollover IRAs are no exception. Before we get into the bonus figures, it is worth mentioning that there are no maintenance or annual fees, and you choose how to invest yourself.
You can also open rollover IRAs as Roth IRAs, SEP IRAs, or traditional IRAs.
To get the bonus, you need to open a self-directed IRA account in any of the three flavors previously mentioned.
Like other bonuses, the amount you get is tied to the amount of money you roll over, with tiers set as follows:
- Deposit between $10,000 to $24,999 to earn $100
- Deposit between $25,000 to $99,999 to earn $250
- Deposit between $100,000 to $249,999 to earn $300
- Deposit between $250,000 to $499,999 to earn $600
- Deposit between $500,000 to $999,999 to earn $1,200
- Deposit between $1,000,000 to $1,999,999 to earn $2,000
- Deposit $2,000,000 or more to earn $3,000
While Ally Invest does not charge for many things, some carry a charge. All such charges are listed on their website so make sure you check them out before committing to rolling over with them.
7. M1 Finance
M1 Finance is a financial services company that offers several financial products through its app. The app is available for Android and iOS devices.
However, you can also log in through their website. While M1 Finance is not a bank, their savings accounts are offered through B2 Bank (an FDIC-insured bank).
You can roll over your retirement plan from a former employer into an M1 IRA and get rewarded for it. The bonus follows a tiered system tied to the value of the check that you roll over. The bonus threshold amounts are as follows:
- Deposit between $100,000 and $249,999 to earn $250
- Deposit between $250,000 and $499,999 to earn $1,000
- Deposit between $500,000 and $999,999 to earn $2,000
- Deposit between $1 million and $1.99 million to earn $4,000
- Deposit between $2 million and $4.99 million to earn $10,000
- Deposit $5 million or more to earn $15,000
M1 IRAs can be set up as Roth, SEP, or traditional IRAs. You can make your own investment choices with several stocks and ETFs available. Alternatively, you can also choose one of their expert pies with over 80 different ones available.
Fidelity makes it very easy to open a rollover IRA with them. They offer three different types of accounts with all benefits, minimums, and applicable fees listed on their website. Each one is listed in an easy-to-read chart making choosing the right option a breeze.
Fidelity is also known for its promotions, which you can find on the dedicated promotions page. These are always subject to change without notice, so always make sure you check their website before making any commitments.
At the moment, they have a promotion available for those opening new accounts. The list of eligible accounts includes both traditional IRAs and Roth IRAs.
Unlike other promotions, this one is straightforward. All you need to do is open an eligible account, deposit at least $50, and you’ll get $100. There are no tiered systems, quickly making it one of the most accessible promotions, especially if your funds haven’t had time to grow yet.
To get the bonus cash, you’ll need to use a unique promo code when opening the account. The promo code is FIDELITY100.
What is an IRA?
IRA stands for Individual Retirement Account. It is a type of account that allows you to save money for your retirement.
Typically, IRA providers include banks, brokers (brokerage accounts), and online banks.
Just like other accounts, IRAs come in different shapes and sizes. Understanding the features and the pros and cons of the different types of IRAs can help you make sure you choose the best one for you.
Is an IRA a good investment?
IRAs are an essential aspect of sound financial planning. They allow you to grow your retirement savings with some restrictions in place to ensure they are not misused.
One such significant restriction is on withdrawals. Generally, withdrawals are only allowed after you reach the age of 59 and a half.
Earlier withdrawals may incur hefty withdrawal penalties, although some exceptions do exist. Exceptions will be listed in the terms and conditions of the account. Make sure you read through them before making any withdrawals to avoid losing money.
Typically, an IRA offers several investment options such as mutual funds, stocks, ETFs, and others. Because of this, accounts are not usually insured by the FDIC.
That said, you might want to ensure that the financial institution you open your IRA with is a member of SIPC. A financial advisor may advise you which options are best for you.
Many banks, credit unions, and other financial institutions offer IRAs. You should have no trouble finding an IRA account, provided that you can meet the qualification criteria. Rollover IRAs, however, are slightly different. We will look into this next.
What is an IRA rollover?
Rollover IRAs are a particular type of IRA that allows you to roll over retirement plans into an IRA. Retirement plans must meet specific qualification criteria to qualify for an IRA rollover. Both 401(k) and 403(b) are excellent candidates.
Why choose a rollover IRA?
Rollover IRAs are great for keeping track of your retirement funds – and especially handy when changing jobs.
Although you can transfer funds to the plan offered by your new job, leave the funds where they are, or even cash out, rolling over to an IRA gives you more autonomy while allowing you to keep track of your funds without paying a penalty fee.
Rolling over to an IRA not only gives you more investment options but can see you get other benefits.
Depending on where and how you roll over to an IRA, you may have to pay fewer fees, get a better service, and expand your options (including converting to a Roth IRA).
Of course, as we’re all different, there isn’t one option that’s the best for everyone. The best option depends on your financial situation, requirements, and goals. The important thing here is to consider your retirement goals first and foremost since this account was designed to help you achieve them.
How to open a rollover IRA
The procedure for opening an IRA may vary from one financial institution to the next.
The basics, however, tend to be standard no matter where you open it, so we’re sharing this so that you’ll know what to expect in advance.
Step 1: Open a rollover IRA account
Generally, the first step is to open the Rollover IRA account. Most institutions allow you to do this online from the comfort of your home without having to visit a branch or call anyone.
Step 2: Roll-over funds
To roll over funds, you’ll need to get in touch with the plan administrator of your previous employer.
You will need to provide the account number of the rollover IRA so that the funds are deposited directly into your account; this step is super important.
If you withdraw funds instead of transferring them to your new account, you may have to pay the penalty.
Step 3: Invest your funds
Depending on how your IRA is set up, you may have the option to invest your funds. Some IRAs offer Robo-advisor services or even a funds administrator.
Make sure you check with the financial institution of your choice to understand what options are available to you.
As mentioned earlier, steps may vary from one financial institution to another. It is essential to check with them before rolling over any funds. You might also want to check with a tax advisor to ensure you do not incur penalties.
Are Rollover IRAs Worth It?
Promotions can sweeten the deal, but rollover IRAs are not the only option. Professional financial advice can help you navigate the murky waters of financial planning. It’s worth the investment if you’re unsure which option is best for you.
Remember that all promotions carry terms and conditions, including making a qualifying deposit. Getting familiar with these will help you ensure you qualify for the promotion you’ve been eyeing.
While getting a cash bonus is always tempting, it’s essential to read the terms and conditions, including whether the funds will be deposited into the IRA and whether you can withdraw them.
It is equally important to pay attention to other things such as account fees and management fees to ensure you don’t end up spending the bonus money (and then some) on fees in cases where you do not qualify for fee waivers.
Frequently Asked Questions
Do rollover IRAs earn interest?
IRAs are primarily set up as investment accounts, and investment allocation can be done in several ways: by you (self-directed), a Robo-advisor, or a professional.
The aim is to grow these investments through earnings as the value of those investments grows over time.
While IRAs do not earn interest, they do generate earnings. Investment earnings are essential as the interest rate rarely supports the inflation rate. As such, without investing the money, your funds are more likely to lose value over more extended periods.
Can I contribute new money to a rollover IRA?
Generally speaking, you can contribute new money to a rollover IRA. That said, you need to be careful. If you plan on rolling the rollover IRA to a retirement plan sponsored by a new employer (this might be the case if you get a new job down the line), you might not be able to do so if you contribute new money to the rollover IRA.
Unfortunately, you’ll need to confirm this with your new employer – which may be difficult if you haven’t found a job yet or might want to change your job in the future. Your best option is to speak to your bank to understand your options.
What is the IRA rollover amount?
The IRA rollover amount is the funds total you roll over from your previous employer’s plan to your new IRA. If you’re not sure what the amount is, you might need to speak to your funds’ administrator to get the full details.
How do I avoid tax on my rollover IRA?
Tax-free IRAs are a hot topic that many people want to know about (and that’s great). Several factors contribute to this, the primary of which is the type of IRA you set up.
In a nutshell, traditional IRAs require tax payments on withdrawals, while Roth IRAs do not require tax payments on earnings or contributions. You should also avoid making early withdrawals, which are withdrawals before you’re 59 and a half years old. Such withdrawals carry a 10% penalty and tax payments.
Which Investment Firm Has the Best IRA Rollover for You?
Some IRA rollover promotions are very straightforward, while others require you to think about the long-term strategy for growing your retirement funds.
The critically important thing here is to ensure that everything aligns with your goals and practice strong financial judgment when making your decision.
Getting professional advice can also help you save money down the line. With so many providers and offers to choose from, it can be hard to decide, which is why you should always read the disclaimers, whether you’re choosing to go with online brokers, banks, or any other type of financial institution.