Moving a Retirement Account
When leaving a job, you have three options for your retirement account: leave the money in your old plan, cash it out, or roll it over into a new retirement account.
Rollover is often the best choice as it consolidates your retirement funds and provides more investment options.
How Rollover IRA Works
An Individual Retirement Account (IRA) is a tax-advantaged account offering various investment opportunities, including stocks, bonds, mutual funds, CDs, and ETFs.
The 2025 contribution limit for a traditional IRA is $7,000 for people under 50 and $8,000 for those 50 or older.
IRA contributions may be tax-deductible, depending on income, filing status, and workplace retirement plan.
- You can open an IRA at most big brokerages.
- Minimum deposit and balance requirements vary depending on the investment vehicle.
- No account minimum for active investing through Schwab One® Brokerage Account.
No additional facts or quotes are available.
Author's summary: Rollover IRA consolidates retirement funds and provides investment options.