Investing Simple Logo
Menu
Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
Earn 5.00% APY with M1 High-Yield Savings Account
M1 Plus members can earn 5.00% APY on their deposits with no minimum balance required.
Webull free stock promotion
Get Up To 5 Free Stocks From Webull
Open a new Webull brokerage account today and deposit any amount of money to receive 5 free stocks. Webull offers commission free stock, ETF, option and crypto trading.
Written by Jason Dolan on March 5, 2023
Category: 
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

Robinhood IRA Rollovers And Transfers Explained In 2023

Saving for retirement is a critical part of securing your future.

Robinhood, a popular investment app, provides its customers with Individual Retirement Accounts (IRAs) to help them save for retirement.

If you have existing retirement accounts, Robinhood allows you to move those funds to your Robinhood IRA through two options: rollovers and transfers.

In this article, we’ll take a closer look at Robinhood IRA rollover and transfer guidelines.

Transfers

A transfer is a non-taxable and non-reportable movement of funds between two retirement accounts of the same type.

For example, if you transfer funds from one traditional IRA to another traditional IRA, it doesn’t generate a tax form, and it’s not reported to the IRS.

To start a transfer, go to the app, select Retirement, go to Menu or Settings, select IRA Settings, go to Actions, and choose Transfer in an external IRA. Follow the prompts in the app to complete the transfer.

Eligible assets from your outside IRAs can be transferred into Robinhood through the Automated Customer Account Transfer Service (ACATS).

Robinhood will reimburse up to $75 for the IRA closing or transfer fee charged by the other brokerage, provided they receive proof of the charge.

Rollovers

A rollover is a transfer of retirement assets from an employer-sponsored retirement plan like a 401(k) to an IRA.

It’s reportable but non-taxable.

There are three options when you leave a company where you participated in their employer-sponsored retirement plan like a 401(k):

  1. Leave your money in the plan.
  2. Roll the assets into your new employer’s retirement plan (if they allow it).
  3. Cash the plan out or roll over the assets to an IRA provider like Robinhood.

Robinhood offers two types of rollovers: direct and indirect.

Direct Rollover

A direct rollover is a movement of money from an employer-sponsored retirement plan where the funds are deposited directly into an IRA. As long as your employer plan provider sends the funds for deposit directly to your new traditional IRA provider, you don’t have to pay taxes on the movement.

To start a direct rollover, you need to set up or use the applicable IRA in Robinhood, then contact the plan admin of the 401(k) or other employer plan that you’re rolling over.

Request a direct rollover of the 401(k), ask what’s required for this direct rollover, and ask what details need to be on the check. Robinhood will supply you with all of the necessary information on their end.

After the check is deposited into your Robinhood account, Robinhood will notify you when the money is available to invest.

You can then choose your own investments, or if you’re unsure how to get started, check out Retirement recommendations.

Indirect Rollover

An indirect rollover, on the other hand, is a movement of money from an employer-sponsored retirement plan where the funds are made payable to you, and you take receipt of those funds in a non-retirement account before depositing them back into an IRA.

With this type of rollover, your plan admin will generally require 20% federal tax withholding on the movement, which will reduce the amount you receive in the end.

Final Thoughts

Remember to review the specific requirements and procedures carefully, and consult with a financial advisor if necessary.

By investing in a retirement plan like Robinhood IRA, you’ll be one step closer to achieving your retirement goals.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Article written by Jason Dolan

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Fundrise
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2023 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitiveâ„¢
magnifiermenuchevron-downcross-circlechevron-down-circle

Get 1 Free Stock Worth Up To $200 From Robinhood!

Don't Miss This Opportunity!

Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.

For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.

18749
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram