Rollover IRA Selector & Cost Impact Calculator
Best IRA for your 401(k) rollover · Updated 2026
Tell us what matters most in a rollover IRA. We'll rank 6 top brokerages.
What Is a Rollover IRA?
A rollover IRA is a standard Traditional or Roth IRA that you fund by moving money from a former employer's 401(k) plan. It is not a special account type — the rollover event is just a transfer. The IRA itself has the same tax rules as any IRA; the rollover mechanism (direct vs indirect) determines whether the move triggers taxes or penalties.
Why do it? Most former 401(k) plans have limited investment options and higher fees than a retail IRA. Rolling over unlocks the entire universe of low-cost index funds, ETFs, and individual stocks available at your chosen brokerage.
Why This Matters for FIRE
If you retire in your 40s with a $500K+ 401(k) balance, that money is locked behind a 10% early-withdrawal penalty until age 59½. The standard escape is a Roth conversion ladder: roll the 401(k) to a Traditional IRA, then convert chunks to Roth each year. Your IRA custodian's policies on partial conversions, conversion fees, and settlement speed directly affect whether the ladder works.
This is why we built this tool: the choice of custodian is not just about fees — it's about the operational feasibility of your entire early-retirement tax strategy.
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Frequently Asked Questions
Can I roll over a 401(k) to a Roth IRA?
Yes — but it is taxable. A direct rollover from a Traditional 401(k) to a Roth IRA is treated as a conversion: the full amount is added to your taxable income in the year of the rollover. For early retirees with low income, this can be done at very low marginal rates. For high-income years, model it carefully.
How long does a 401(k) rollover take?
A direct trustee-to-trustee rollover typically settles in 1-3 weeks. During that time, the funds may be held in cash at the receiving IRA, missing market exposure. Some brokerages offer accelerated in-kind transfers of certain 401(k) assets (e.g., a TDF you already hold), which can settle in days.
What is the 60-day rollover rule?
If you do an indirect rollover (the 401(k) plan sends you a check, you redeposit it), you have 60 calendar days to deposit the full gross amount into an IRA. Miss the deadline, and the entire distribution is treated as a taxable event with a 10% early-withdrawal penalty if you're under 59½. Direct trustee-to-trustee rollovers avoid this entirely.