Open an IRA
Already have an IRA? Great — skip this step
There are a few choices you have with an old 401(k), but most people who move their 401(k) assets transfer their 401(k) funds into an Individual Retirement Account, or IRA.
When choosing an IRA, you’ll want to decide whether you prefer to pick your investments yourself, or have them managed for you. Some IRA providers focus on managing your assets for you, while others let you open an account and pick investments yourself.
Once you’ve decided on a provider, you’ll want to open an IRA that matches the ‘tax-type’ as your 401(k) in order to avoid paying any unnecessary taxes:
- If you have a Traditional 401(k), you’ll need a Traditional or Rollover IRA.
- If you have a Roth 401(k), you’ll need a Roth IRA.
Need help choosing an IRA? Capitalize can help you compare providers so you pick an IRA that suits your needs as part of our rollover service.