How to Rollover a 401k to an IRA | 7 Easy Steps

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0:00 7-Step 401k Rollover
0:23 Step 1: Decide where to open an IRA
The two primary choices are a traditional broker or a robo-advisor
2:00 Step 2: Select the type of IRA account
For most, I believe a Rollover IRA is the best option
4:18 Step 3: Get help from IRA provider
Don't call your 401k company to start the process. Start with your new IRA provider.
5:17 Step 4: Contact your 401k provider
It's here that you'll initiate the rollover
7:10 Step 5: Deposit check into Rollover IRA
It's critical that this happen within 60 days to avoid taxes and penalties.
7:40 Step 6: Invest the money
When the money is deposited in your Rollover IRA, it will go into a cash account. You must invest in according to your investment plan
8:00 Step 7: Designate beneficiaries
It's critical to designate primary and secondary beneficiaries. Consult your trust and estates attorney for advice.

If you want to rollover a 401k to an IRA, it's critical that you get the process right. One mistake can trigger taxes and even penalties. It starts with deciding where to open your Rollover IRA. I recently chose Merrill Edge, but there are other good brokers. You might also select a robo-advisor like Betterment or Wealthfront. One you decide, the next step is to call the IRA provider. Don't start with your 401k provider. The IRA company can help you through the process. If the rollover is by check, make sure to get it deposited into your new Rollover IRA within 60 days. If you don't, the IRS could deem it a distribution and charge you taxes and a penalty. Once it's in the new IRA, be sure to invest the money according to your plan and set the primary and secondary beneficiaries.

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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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