Moving a Retirement Account: Understanding Rollover IRA
When leaving a job, you typically have three options for your retirement account: leave the money in the old plan, cash it out, or roll it over into a new account. Rolling over is often the best choice as it consolidates retirement funds and provides more investment options.
How Rollover to an 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 those under 50 and $8,000 for those 50 or older.
- IRA contributions may be tax-deductible, depending on income, filing status, and the presence of a workplace retirement plan.
- You can open an IRA at most major brokerages, with varying minimum deposit and balance requirements based on the investment vehicle selected.
- Some accounts, like the Schwab One® Brokerage Account, have no account minimum for active investing.
No account minimum for active investing through Schwab One® Brokerage Account.
Author's summary: Rollover IRA consolidates retirement funds and offers more investment options.
More News
- Why are we still paying for Sarah Ferguson? writes Shelagh Fogarty | LBC
- Can Joji, Tame Impala or Chris Brown & Usher Make Waves on the Hot 100 Next Week? | The Contenders
- Inside the Murdaugh saga: How a South Carolina dynasty fell to murder and fraud
- The Most Jaw-Dropping Celebrity Halloween Costumes of 2025: Latin Edition
- Generation Rent is out of time and patience, writes James Hanson | LBC
- The royal family has ended the era of unquestioned deference writes Shelagh Fogarty | LBC
- The power of organising and how to win the outsourcing battle | Article | News | UNISON National