Frequently asked questions

About Rollover IRAs

 

What is a Rollover IRA?

A Rollover IRA is a retirement savings account for people who have changed jobs or retired and need to “roll” their 401(k) into a Traditional or Roth IRA to avoid taxes and penalties.

How do I roll my 401(k) into an IRA?

We’re happy to help you roll your 401(k) into an IRA account that best suits your needs. After opening your IRA account, you’ll have three options for “rolling over” the funds:

  • 60-Day Rollover: Ask the financial institution holding your 401(k) to transfer money to you in the form of a check or wire transfer. You must deposit the funds into an IRA within 60 days, or you will be subject to a distribution penalty.  
  • Trustee-to-trustee transfer: If you’re opening an IRA at a financial institution that differs from the one that holds your 401(k), ask the trustee of your 401(k) to transfer money to the trustee of your IRA at the new financial institution.
  • Same trustee transfer: If your 401(k) and IRA are held by the same financial institution, your trustee can easily transfer money to your new IRA account.

Interested in rolling your 401(k) into an IRA?

We’re here for you. Speak with a banker at a BBVA Compass branch near you or contact one of our customer service representatives by phone.