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Rollovers Comparison Table

Overview Compare Rollover Options FAQs
Option Advantages Disadvantages
Directly roll over to a Traditional IRA
  • No taxes or penalties
  • Maintain tax-deferred status
  • Additional contributions allowed to age 70½
  • Wide range of investment choices
  • Greater control over assets
  • Opportunity to consolidate retirement accounts
  • Loans not allowed
Directly roll over to a Roth IRA
  • No income limits to qualify
  • No penalties
  • Qualified withdrawals are tax-free
  • No mandatory withdrawals at age 70½
  • Additional contributions allowed if you meet income limits
  • Wide range of investment choices
  • Greater control over assets
  • Opportunity to consolidate retirement accounts
  • Must pay taxes in the year of rollover, preferably with assets outside the retirement account
  • Loans not allowed
Leave the money in your current plan
  • No taxes or penalties
  • Maintain tax-deferred status
  • Plan may allow loans
  • No additional contributions
  • Limited investment choices
  • Less control over assets
  • Subject to plan policies of a former employer
  • May require account minimums
Move the money to a new employer's plan
  • No taxes or penalties
  • Maintain tax-deferred status
  • Additional contributions allowed
  • Plan may allow loans
  • Limited investment choices
  • Less control over assets
  • May require a waiting period
Take the money in a lump sum
  • Money available to spend or reinvest
  • 20% automatically withheld for taxes
  • Additional federal, state and local taxes may be due
  • Possible 10% penalty tax for early withdrawal
  • Lose tax-deferred status
  • Retirement account reduced to $0

The information above is not intended to provide and should not be relied on for accounting, legal and tax advice or investment recommendations. The views and strategies described may not be suitable to all readers. Please contact your financial professional or tax advisor for additional information.

Asset allocation/diversification does not guarantee investment returns and does not eliminate the risk of loss.

IRS Circular 230 Disclosure: JPMorgan Chase & Co. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with JPMorgan Chase & Co. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.