Rollover IRA

What is a rollover IRA?

A rollover IRA is a retirement savings vehicle that allows you to move money from your former employer's retirement plan, like a 401(k), into an IRA. When you roll over to an IRA, you can maintain tax-advantaged status of your retirement savings when you follow the IRA rules.

How does a rollover IRA work?

When you change jobs or retire and have savings left in your former employer's retirement plan, you typically have four options (PDF) when deciding what to do with your money.

If you opt to move your money into an IRA, you'll determine if a traditional IRA or Roth IRA is right for you. This generally depends on the type of money in your original account and your tax situation. It's common to roll pre-tax money into a traditional IRA and post-tax money into a Roth IRA.

You can usually open your IRA online, over the phone, in person, or by mail and then fund it by requesting to transfer money from your former employer's retirement plan to your new account.

What are the features of a rollover IRA?

Rollover IRAs allow you to:

You may want to consider other retirement account options if you're:

  • Planning to withdraw your money before age 59½
  • Looking to take a loan from your retirement account

Why open a rollover IRA?

IRA might be a good fit if you're:

  • Wanting a way to save alongside your company 401(k) plan
  • Transitioning to self-employment
  • Seeking access to a wide range of investment options
  • Looking to simplify tracking and management of your savings by consolidating multiple retirement accounts 

Please consider product features and fees before investing. Learn more about your retirement savings options (PDF).

Why choose Principal for your IRA?

See how an IRA with Principal® can fit into your long-term financial plans. Learn more about our IRA options.

Or, open your IRA with Principal today:

We offer options that are catered to your investing style.

  • Principal IRA keeps you in the driver’s seat. It gives you the control—with as much or as little assistance as you want to help you make informed investment decisions.
  • Principal® SimpleInvest IRA uses technology to create an investment mix personalized to you, that’s monitored and rebalanced on an ongoing basis.
  • Let us connect you with a financial professional in your area to discuss a rollover IRA.

Want more information? Read our article on 3 steps for opening an IRA.

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Already have an IRA with Principal?

Log in to view account information online or add to your account.

Learn more about rollover IRAs:

Help to simplify your retirement planning

Woman who made the correct choice for her 401k based upon her future goals for retirement.

Making the right choice for your 401(k)

We can help you consider all your options for your old 401(k) so you can feel confident you’re on track for the future you want. 

Woman who learned what retirement account option is right for her based upon her goals.

Types of retirement accounts: IRAs and 401(k)s

Photo of a woman who has consolidated retirement accounts from past employers into one retirement plan.

Account consolidation: Streamlining your retirement savings

 

This document is intended to be educational in nature and is not intended to be taken as a recommendation.

The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements.

Financial professionals are sales representatives for the member of Principal Financial Group®. They do not represent, offer, or compare products and services of other financial services organizations.

Insurance and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC. Principal Life and Principal Securities are members of Principal Financial Group® (Principal®), Des Moines, IA 50392.

Principal® SimpleInvest is a discretionary investment advisory program that offers diversified investment portfolios for a fee. Principal® SimpleInvest is sponsored and managed by Principal Advised Services, LLC, which consults with Principal Global Investors, LLC in the creation of the portfolios and the selection of the underlying portfolio investments. Trading and execution services provided by RobustWealth, Inc.  Principal Advised Services, LLC, Principal Global Investors, LLC, and RobustWealth, Inc. are members of the Principal Financial Group®. Brokerage and custodial services provided by Apex Clearing Corporation, member FINRA, NYSE and SIPC. Apex Clearing Corporation is not affiliated with any member of the Principal Financial Group®.  Principal® SimpleInvest portfolios are comprised primarily of Principal® products, including affiliated mutual funds and ETFs.

Please refer to the Form ADV (PDF) for Principal Advised Services, LLC and other applicable disclosures and agreements for important information about Principal® SimpleInvest and its services, fees and related conflicts of interest.  All investments have inherent risks. Investing in Principal® SimpleInvest portfolios does not guarantee profit or protect against loss.

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